Yesterday, Apple release iBooks 1.2 for the iPhone and the iPad which has an unannounced feature. You can download EPUB files directly off the internet into iBooks now. Just like you’re able to do with Stanza. So now, whenever you’re browsing Storiesonline or Finestories, just click the EPUB button for a story and you’ll be asked about which program to open the file with (if you have more than one ebook reader), just select iBooks, and the story will appear in it. No more need to download EPUB files to your computer, add them to iTunes and then sync.

However, for some reason, files downloaded this way don’t work their way back to iTunes. So if you download a file it doesn’t show up in iTunes book section and it doesn’t propagate to other iOS devices. But if you have only an iPhone or an iPad, then this is not really a concern.