I have no objection to having both the Illuminated GIF file and the ASCII equivalent character. I see these as just fine, with no impediment to either reading or searching or quoting, other, of course, that any artifact of the GIF file usually not really much of a problem when I cut and paste.
As for the MOBI, EPUB, etc., formats, as long as it's easy from the average reader's POV, it should be acceptable.
OK, then someone needs to think this through and come up with standards and expectations, because what is happening now is "not working." Again, it is not infrequently the case in one or more of the file formats that PG is distributing that a particular item of text is showing up 0, 1, 2, or 3 times, where the "right answer" is once -- or maybe twice -- if as you suggests one accepts redundancy in the case of illuminated letters. As you suggest probably the simplest answer is that if someone wants to put in illuminated letters they also include the plain-text version of the letter, and then presumably one should NOT include an alt-tag on the "illustration" [when it is actually just an illuminated letter] What one *ought* to do for a no-illustration distribution given a "real" illustration with an alt-tag is yet another matter that needs to be thought out. Also suggest it would be nice if we had a naming convention for illuminated letters or some such equivalent, such that the file format conversion software, and/or other software, can tell whether a particular HTML "really" has illustrations, or if it just contains illuminated letters. For example in the text in question, when I ask PG for the MOBI version with *no images* this is what I currently get (which is not quite what one would hope for!) ... Saying her Prayers T was the night before Christmas, when all through the house Not a creature was stirring, not even a mouse; The stocking were hung by the chimney with care In hopes that St. Nicholas soon would be there; Sleeping Mouse Stocking in the Fireplace The children were nestled all snug in their beds, While visions of sugar-plums danced in their heads; And mamma in her kerchief, and I in my cap, Had just settled our brains for a long winter's nap, The children were nestled When out on the lawn there arose such a clatter, I sprang from the bed to see what was the matter ....