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I'm afraid we must agree to differ; both <div> and <p> are block-level elements that have an implied line break before and after them. There's absolutely nothing wrong with using <div> for paragraphs - the ePub validator you kindly linked to certainly doesn't object to it. The reason we have both is simply historic - <p> long predates <div>.
We're straying rather off-topic here. If you wish to continue this discussion, it would probably be more appropriate to do so in the ePub forum.
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