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I think (I think a lot, nothing useful, though) that the way to win the "Format war" is to have devices that accept a wide range of formats. So, if you wanted a Kindle book (awz) you downloaded the Kindle Reader (with PID) to your device, and then you can purchase Kindle books from Amazon. You want a MOBI book? Download the Mobipocket app. to your device and well..... you get the picture, right?
I have been reading mobi / lit for years, on and off as I get a device (mostly PDA).
From my perspective, Copyright seems to be Amazon's big bug-bear, and a propritary format avaialble from a US address (and credit card) is a way to attempt to keep this in check and keep Best sellers on thier lists.
With Flash memory being cheaper every day, if you had a device that had say 1 Gig of system memory for OS and reader programs ONLY+ an extra Gig for on-board storage of docs / books/ audio, then add SD expansion for additional content......oh, and kill PDF, for fiction Ebooks, it's almost had it's day, though it does make a neat container for re-conversion to other formats.......
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