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I think there's a simple reason for the popularity of .pdf format. It's common and widespread, so everyone has a free reader on their computer, and people have the expectation that no matter how technology changes, they will continue to have access to the book on multiple platforms.
I've kind of treated text and PalmDoc as my generic formats, but once you introduce DRM you loose that security of always being able to read the book you bought in whatever platform you choose. And I think PalmDoc itself is pretty much limited to PDA readers also.
BTW, doesn't it look like that lady has her cheek almost right up against the device for that picture? I don't think she could really read like that!
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