Sorry to be late to this thread, but in my experience the Kobo does support embedded fonts in epub files. Jane Fancher and several of her elves (myself included) spent considerable time making sure they worked on several epub readers. I could post pictures - if I have to.
Part of the confusion may stem from the fact that Kobo's proprietary sqlite format supports neither embedded fonts not illustrations - a failure they have remedied in the new wifi Kobo format, apparently.
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