I disagree. I was pretty impressed at how readable it was on the iPhone. The biggest problem with copyright free e-books is that they are 100 years old, and mostly boring. Not all, but most.
On the iPhone you get blurbs. I have the same problem with Classics on the iPhone. It makes reading feel cramped. Stanza is even worse: it has awful margins, and it has no support for making paragraphs feel good. It's functional but unpleasant.