I used to ignore the Kindle partly for this reason, as well price and as PDF handling, but the new one appears to have solved those issues and is looking very interesting to me. I need PDFs to look correct out of the box, with no conversions possible; I have lots of books in PDF, EPUB and TXT formats, and I just want to attach it to the computer, dump the lot on there, and read it - and it looks like that's how it works now. My EPUBs will need conversion to something else, but that's not a deal-breaker, since I mostly created them myself (no DRM), and I have the tools for that (e.g.
Calibre).
PS: MOBI and PRC, like EPUB, are compressed book formats. MOBI is associated with a company called Mobipocket who was acquired by Amazon; PRC comes from the old Palm Pilot, and EPUB is an attempt at an open standard. All can use DRM, but don't have to - it's up to the suppliers, not the formats. Amazon needs to start supporting EPUB - they have no good reason not to, just the fact that that's what their mortal enemy is supporting through
Google Books.