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I prefer epub because it is cross platform and likely to be supported for a while. Before the Sony store converted to epub I bought and downloaded a few lrf/lrx books and didn't really see any difference in readability, format etc.
What I have found is that some publishers do much better jobs than others in setting up their books for ereaders. The better ones don't enforce the paper-version page margins and typefaces. Others do which results in lots of dead space. Some publishers use typefaces/fonts that don't scale to different sizes well.
I agree with the other posters that I would not format my books in pdf and that pdfs don't convert well to other formats.
Enjoy,
Kurt
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