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I buy in .lit if possible because
1) it's - supposedly - good (best?) quality source files
2) it's easy for me to strip the DRM.
I prefer using lrf on my Sony, so converting what I buy is my best option, so for me, the question of what to buy is not: what works on my current device, but what I can most easily convert. DRM free would of course be the way to go, but unfortunately much of what I want to read is DRM'd.
Before I learned to strip DRM I did download some books from illegal sources. I couldn't buy the books I wanted in a format I could use, and stripping DRM and converting was just too much hassle.
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