I see usability issues with their new name.
They don't own
http://kobo.com, and their branding focuses only on 'Kobo', not on 'Kobo Books' - so I see a lot of people typing kobo.com into their address bars to get to their book store.
The same issue exists with search - a lot of people navigate to a website using Google, and they are going to type in Kobo ('Kobo Books' is longer to type) but Kobo Books won't be the top search result.
Why make it harder for people to find you? Shortcovers was a unique, easy-to-remember name. Longer to type, but hard to get wrong.