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Not sure where the idea that MSReader format is dead came from. Judging from the thousands of books available in that format - legal or otherwise - there is huge demand for it. There is also large demand for HTML, PDF and other formats too...
But I'm sure, given the choice, users would prefer a standard file format that allows them to choose a reader on features and functionality, rather than, say, being locked into what is most readaily available, or the application who's format the book library is built with.
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