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Typically ebook readers are larger than PMP's with larger screens. If you're going to read for a few hours, then the screen of a typical PMP becomes pretty eye-straining (due to size, contrast, and brightness).

The hack allow ENCRYPTED Mobi files to be read on the Kindle. So you can buy a DRM-protected mobi book and read it on Kindle.

Kindles can read a variety of non-proprietary, non-DRM'ed formats. They read TXT, HTML, JPEG, and non-DRM Mobi files directly.

The Kindle has many flaws, but it does allow you to read a few different non-DRM formats.

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A revolutionary portable reader that wirelessly downloads books, newspapers, magazines and blogs to a crisp, high-resolution electronic paper display that looks and reads like real paper, even in bright sunlight.