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I don't think they are using their own data format, but I don think it will be using 'Google Gears' so that means "any device with a Web browser" might be any device capable of running the Google Gears API on that web browser.
That would permit caching of an entire ebook in html format.
They could conveniently forget to issue a Kindle compatible Google Gears API (or other devices who don't become Google Editions Value Added Resellers).
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