Amazon's "free" books are formatted for the Kindle only. I don't know if they're DRM-locked, but given Amazon, I'd suspect they are.
Google is ... problematic. Their quality is extremely irregular, ranging from excellently-formatted epubs to pdfs of bad scans. Or, worse, OCR'd text which is clearly generated from bad scans. What concerns me more about Google is their refusal to allow viewing of most of their public domain books. Apparently if anyone is reprinting a book, which a number of POD houses have taken to doing, Google will not allow the original to be viewed; even if it isn't in print in any form, it's usually still tagged with an "unavailable due to copyright" notice -- and we're talking 100+ year old books here, books by authors who died in the 19th century. If there's anywhere in the world that a book published in 1872 is still in copyright, it's news to me.
Project Gutenberg started with plain text, but has since expanded into HTML, epub, and other formats. Most if not all of their books are now available in machine-converted formats for basically every known reading device.
There are also sites which scrape PG and add covers, more formats, etc. Manybooks is my personal favorite; Feedbooks is another. They also have original works, which I haven't explored much but in some cases appear to be quite good.
Here on MobileRead there is a whole section of ebooks which have been handcrafted by MR members. Quality-wise, they're probably better than any other ebooks out there, including the commercial ones.
And, of course, you can always get calibre (which you should do anyway) and convert your ebooks to the format of your choice.
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