I think some of you guys are misunderstanding me here. I know that the Kobo hardware is capable of displaying graphics. I know that the ePub version of books display graphics. My gripe is not with the reader hardware (which I kinda love) but with the Kobo proprietary e-book format, which is a completely different file than the ePub.
You can get the same ePub from many different places, but the only place to get the file specifically made for the Kobo is through one of the sites powered by them. It's the whole incentive to buy eBooks from Kobo themselves and thus should have the most care put into it.
Instead, one has to go through all kinds of stuff to get a format that doesn't run as well on the Kobo (ePubs are noticeably slower, take longer to load, don't display covers on load, usually have poorer formatting etc) working just to get the "correct" reading experience. At this point you might as well warez the things.
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