Went and bought a whole whack of books right after that. I pirated the first book in Song of Fire and Ice (Game of Thrones) and bought the rest because I loved the book so much.
So yes, Amazon has played this arena VERY well, in my opinion.
as long as you download single books and not packs of .doc files, the formatting is probably better on pirated books in my experience.
If Amazon wants me to invest hundreds of dollars in buying books on their store, they're going to have to do a better job - perhaps some minimum quality guidelines.
I didn't do an exhaustive survey by any means, but the few full-priced (at least somewhat) popular contemporary books I checked out on both Kindle and Nook were better done (on average) on the Nook, as table of contents were more often included with Nook books.
To me - the fact that I should have to examine quality when paying $10 for a book is inexcusable. In a physical book store I don't have to worry about these things.
EDIT: replaced "chapters" with "table of contents"
Are those really much better formatted though?
Table of Contents always included
No funny characters scattered throughout the text
No missing paragraphs or words
Graphics on the same page as their captions
I found I could not count on these things for books in the Amazon or Barnes and Noble stores for low cost or free books. Even more expensive books often lacked table of contents (when one was appropriate - for books with chapters or short stories). More expensive books often lacked appropriate handling of graphics - Nook is bad, Kindle is worse.
Feedbooks almost always has table of contents when appropriate, and never has missing paragraphs, funny characters, etc. Though once (out of around 50 books) I encountered a chapter that was the duplicate of the previous chapter.
EDIT: formatting
Harry Harrison (only a few that he forgot to copyright) Cory Doctorow Peter Watts (Blindsight is awesome, Starfish is good too)
And if you like any of these, Feedbooks always suggests related titles at the end of the book that you might also like. On Kindles, these are live links for one click downloads.
Frankly, I'm amazed that the quality and organization of Feedbooks is so much better than the Nook and Kindle stores. Obviously there are far fewer titles though.
The rest of the publishing industry occasionally forgets and does dumb stuff (like get pissy over the text-to-speech function in order to protect their audiobook profits).
In fact, I won't be surprised if DRM is eventually dropped from eBooks you buy.
I verified recently that I can "rent" a book for, say, 30% of its "buy" price, remove the DRM, and be left with a DRM-free book (not limited to a month rental).
DRM is something you have to constantly bandaid as people break it, and it's always broken quicker than you can push out fixes for the most part, so it's just futile.