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As much as I don't like a lot of things that Microsoft does, I do think it is a shame that they did not join the IDPF and participate in the creation of epub. Although I think LIT is an almost dead format, it still has some very nice features. In particular, the dictionary and annotation support, mentioned by =X=.
There is also something to be said for being a bit more definitive about how reading devices will display things. The epub specification leaves too many things "optional", which is why we already have issues with different ereaders.
Another feature of LIT that would have been nice to have in epub is the compression scheme that Microsoft used. It is designed for on the fly decompression, which is better suited to ereaders than ZIP is.
As I said, it's a shame that Microsoft did not want to play nice with the other kids. We all would have benefited from a better epub standard. I still like LIT when I have to buy an ebook, due to the ease of removing the DRM. But it is such a niche format now that I don't see it surviving in the long run.
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