Bad fixed-format files are just as bad as reflowable formats in a bad reader.
It's not fair to compare good fixed-format with lousy readers ("PDFs are typographical works of art, mobipocket leaves too much whitespace")
It's not fair either to compare decent readers with crappy fixed-format ("I can change fonts in the Cybook, PDFs are tiny and impossible to read")
It's true that PDFs can be made to look nicer than what reflowable format readers are capable of displaying, but the latter can still improve (and I hope they do), and no change will be needed in the ebooks, only in the reading software.
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