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Not a dumb question Cthulhu. LRF is a Sony specific format. Many of us feel it is superior to RTF on the Sony Reader because it supports graphics, Table of Contents, and hyper links (like footnotes.) It is not a format for archiving ebooks to be read on other devices or future devices.
There is a program called ABC Amber Sony Converter that will convert LRF to other formats such as RTF but it does not export graphics or retain format.
There are many excellent tools to create LRF files from multiple sources. The two best IMHO are (1) the package libprs500 by kovidgoyal and (2) the program BookDesigner by vvv. Check out the conversion page in the MobileRead Wiki (the link to the Wiki is at the top of this page.)
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