When I stop to think about the question, it seems pretty clear.
ePub: Instant collection of books - hundreds of thousands of them. Publishers have already created ePubs for Sony, Kobo, Barnes and Noble and others. The process of making sure an ePub looks good on a new form factor is much easier than converting content to a new file format, especially since ePub is meant to reflow easily on devices of varying dimensions.
Apple DRM: Control. Read books on iPad. Presumably on iPhone one day soon too. Probably on MacBooks, eventually. Possibly even on PCs, especially if the iBook support comes through iTunes, and not a standalone application. Reading on Android? No. Blackberry? No. Windows Mobile: No. Apple views itself as a player in desktops and notebooks and the dominant force in mobile devices. Embracing ADE wouldn't further that goal, it'd harm it by making their books viable on another platform.
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