As a reader, I like how Nook STR handles the defaults (mostly). I prefer reading with font-size 1.0em at size notch 2, justified paragraphs with hyphenation(the main reason I bought Nook for), first-line indented and with no extra space between paragraphs, line height at notch 2 using Malabar font, page margins at notch 1 on the reader. I never turn on Publisher Defaults while reading.
I am happy that Publisher Defaults option is set at reader level instead of individual books, because my viewing pleasure is my own business, and I know it better than the best book designer out there.
My .02
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