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Yep. The Kobo doesn't have Reflow support, simple Zoom and Pan&Scan is all you have to work with. They've mentioned possible future Reflow support, but I wouldn't expect it anytime soon.
Whether you have to pan right to finish a sentence would depend on the page size of the PDF, and the font size you could comfortably read at.
If you want a good reading experience with PDF's on any small-screen mobile device, you should cook the PDF's with the page size that jives with the target screen size.
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