I must confess to being baffled by all this talk of typesetting, for the following reasons:
1) My ebook readers (Calibre and iBooks, mostly) algorithmically render and reflow the text to arbitrary typefaces, sizes, columnar layouts, etc. Isn't this "typesetting?" And isn't it taking place entirely in software? [0]
2) Latex consumes a plain-text (aka neither designed nor typeset) file as input and produces tolerably-good machine typeset output. Its output is vastly better than plenty of well-regarded periodicals such as [1], which proves by construction that good-enough machine typesetting can be implemented.
[0] I'm not claiming iBooks typesetting is remotely comparable to what's found in a Random House hardcover, but rather that no hand typesetting at all takes place for most (all?) ebooks.