Yep, I hate embedded fonts too. However, some books (esp. children's books) have very unique fonts embedded that cannot convey the feeling of text when written in plain fonts, like scary, funny, robotic, furry ones. Also some books contain symbols that simply cannot be shown with plain fonts. There are lots of children's books like these with embedded fonts, and I found out so far the only reader that can recognize and show texts in embedded fonts correctly (if formatted right) is 1.1.2 Nook Reader.
My previous attempt to use 1.1.2 Reader on 1.2.1 system failed (occasional screen blackout while reading). I guess this is related to EPD library incompatibility noted somewhere on this forum. Now I'm reverting back to 1.1.2 system and trying to figure out how to achieve what was done in 1.2.1 the same way. I'm now stuck with removing banner text on the bottom of screen. Hmm, I digressed... Sorry.