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In regards to Zoom, it's not a technical issue but a marketing issue.
If zoom is unnecessary because of reflow, then a larger higher resolution device is also unnecessary in the market. The PRS-900's larger screen is marketed as supporting a two-page view. What is IREX's marketing justification for their larger screen device? The possibility for insanely larger fonts than the competition for use by the visually challenged? For people who love large margins? You can't just throw a piece of hardware out there with no clear market focus and just hope someone buys it accidentally.
Until recently with the introduction of support for EPUB, PDF is the primary supported document for IREX devices. PDF documents sometimes supports reflow but the specification allows for documents that do not reflow well, and so zoom is needed, aided by larger screen sizes. Despite EPUB, PDF viewing is still important and good support for it is a nice marketing point against the competition (ie: show a comparison shot of a PDF document on the DR800 compared to the competition). Also note that it's more likely that personal documents will be in PDF format (ie: print to PDF).
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