On a similar note, why haven't PDF been replaced? There are XPS, DjVu and XHTML (EPUB) but they all seem to be targeting different usecase (a packaged HTML file). What I want is a simple document format that allows embedding other files and metadata without the Adobe's bloat. I should be able to hyperlink within pages, change font-size etc without text overflowing and being able to print in a consistent manner.
"without text overflowing" brings with it a lot of detail. In pdf every letter/character/glyph of text can have an exact x,y position on the page (or off the page sometimes). This allows for precise positioning of content regardless of what else is going on. It is up to the application that writes the pdf to position things correctly and implement letter or word wrapping.
XPS was the closest to reimplementing PDF but microsoft didn't get enough buy in from other parties so it quietly died.