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Disclosure: I know nothing about TeX.
However, from what various people have been saying it certainly sounds like it could be a viable way to mark-up ebooks.
The big issue I see here is that the degree of typographic excellence some posters are looking for requires a fixed page layout: and that is the one thing that other posters are most opposed to.
No one fixed page layout will fit every person's need or every device, so you either need sub-optimal rendering on certain devices or different files or render paths for different devices - and the former kills the idea of a universal standard file-type.
Reflow is one of the single most important features for many people - removing that defeats the point.
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