Will Amazon ever provide a way for Kindle users to read EPUB books?

My wife got a Kindle ($139, 3G/Wi-fi) for Christmas and now she is after me to find lots of content for her, preferably free content. We have often downloaded audio books from our local library through the "Overdrive" console, and were hoping that their e-books would also be in a format that could be read by Kindle, or in a convertible format. It turns out, however, that the proprietary Adobe digital format (EPUB) has taken over this medium, and it's getting harder and harder to find anything in a different format. Some of the books are in "mobipocket" format, and some are .pdf files; but both of these have problems for the Kindle. I have been searching for about a week, and haven't found any way to convert EPUB to Kindle format. Failing that, I am hoping that Amazon will cave in and provide an update to Kindle to allow its users to do this. Does anyone out there know what the status of this issue is? Thanks.