Great question!
I have a PRS-600 and have noticed a difference in fonts depending upon the book I'm reading, when all are set at the "small" font - some are legible, and others need to be turned up to the "medium" font. So my guess would be is that it's determined by the book, not the device itself.
That's just a subjective guess though. (I've been around to various sites, including wikipedia and Sony and haven't seen anything on this question.)
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