Corona,
This is called PDF "Reflow". I've seen posts from the Kobo team mention they are looking into adding it in. They certainly know people want it, but I doubt we'll see it in the first firmware upgrade.
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I've just watched M. Tamblyn, in the video about Shortcovers and Kobo, say that consumers want text to move by pages rather than scrolling.
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I think you misinterpreted what s/he meant by scrolling. He probably meant scrolling as in sliding pages down smoothly, like scrolling down a long webpage with your mouse-wheel. They're saying the way the kobo works now, by flipping page by page, is what people want rather then the web-page type scrolling behavior, and I'm sure most people would agree, including yourself
I remember trying to read something in reader software like 7 years back that had "automatic scrolling", where the text slowly scrolls down the screen... I hated it.
Anyway, when you said "This is pretty much scrolling", what you're actually talking about is what everyone else calls panning (basic pan&zoom).