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So far, no word has been announced as to if support for LRF (and thus the DRMed LRX variety), has been dropped. You will be able to redownload all books purchased through the Sony store, but I doubt that you'll be required to delete the LRX books first (I've accidentally downloaded multiple copies of the same book before from Sony).
Current firmware for the 505 DOES support both LRF and ePub. ePub support was added a while back.
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