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You can zoom, yes, but the issue is that the zoom "resets" with every page turn. If you're just looking up a specific page, that's not really a problem, but for actually reading a book it's pretty bad.
If you want to read large-page PDFs, you really need a reader with a larger screen. The "perfect" device for PDFs is currently the iRex DR1000S, with its 10" screen; it can read A4/Letter PDFs without zooming, but is rather expensive. The 8" Kindle DX is another possibility if you're in the USA.
If you can hold off for a few months, there will be a whole slew of new large-screen devices appearing on the market in the first half of 2010.
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