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Anyhow ... pdf reflow unquestionably would be perceived as a big improvement in usability by the majority of users.
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Please don't fall into the fallacy of believing that the opinions represented on this or any other forum represent "the majority of users." Doesn't happen except by accident. Without proper market research no-one can ever tell what "the majority" wants.
You can argue the same way about my feelings that the functionality would only benefit a small minority of Kobo's market. All I have to base *that* on is the fact that very few mass-market retailers offer pdf-only product. Marginally better then using the consensus of a forum, but not by a heck of a lot.
In any case, Kobo uses a third party application, licensed from Adobe, to display epubs. They use their own rendering engine for their "value-added" kepubs. It would not surprise me that the fact that they can render PDFs at all is a side-effect of using Adobe software and hence will never get any development time from Kobo.