It might be considered broken, I suppose, if someone were to take PG HTML and run their own conversion on it, in ignorance of PG's approach. Or if they were to take PG HTML and use it directly in an ebook reader.
The HTML exists, the HTML is being distributed, and the "@media handheld" declarations inside them are exactly wrong. Marcello could have correctly followed the lead of other vendors and invented a PG-specific @media, such as say "@media pg-ebook" and epubmaker would have worked just as well, and then PG/DP would not be stomping all over the standards the rest of the world has defined. Even today it would be better now to switch over to such a pg-specific @media designation rather than continuing to propagate a mistake. It is not the rest of the world which is being ignorant of PG's approach. Rather, it is PG who is being ignorant of the rest of the world's approach. PG is the flea on the tail of the dog. The HTML, EPUB and the MOBI world is the huge dog, and PG is the tiny flea.