Palm DOC format is basically compressed plain text, so you won't get any formatting or pictures. Lit files use HTML and graphics, and are much nicer to read for that reason.
You've also just highlighted the major problem people have with DRM and ebooks. You CAN'T lend a DRM encrypted ebook to a friend, that's one of the goals of the encryption.
That's why I like convertlit
I much prefer ebooks to standard paper now. I have a HUGE paperback collection, and will still pick up a second hand book if I see one I want, but I don't see myself ever buying a new paperback or hardcover now (the cost is a big barrier for me). Ebooks are cheaper, and I can carry dozens of them in my pocket at once <g>.
Craig.