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So why cripple it to such a large extent?
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I guess Amazon makes such a special effort to cripple PDF to be sure that it will not concurrence their own Ebook format.
They will probably sell textbooks in their own format, on their own store. They probably hope that limiting PDF support will deters you or the textbook publisher from using/selling PDF textbook.
It's really a shame, because hardware wise the device have everything it need to display PDF nicely, and the price is good compared to current big screen readers. I hope someone will hacks it and add a good PDF reader, it would be great.