Thanks all. I have Joshua Talent's book and it has some good ideas, but isn't explicit enough for me, especially on what works when specifying styles in CSS and (obviously) using KindleGen.
I have indeed read all though the old and new documentation from Mobipocket and Amazon. But I don't want to have my books in Mobipocket-specific 'HTML'. I want to get my source files in proper XJTML that produces valid ePubs with roughly speaking the same formatting as an ePub that we get through using KindleGen on it - thus the use of a padding-left (which KindleGen ignores) with the negative text-indent.
As for fractional em values - no, KindleGen rounds fractional values to the nearest em.
And as for smaller font sizes - this is a personal choice. I think that having the indents scale with the displayed text size is more important than having the indent the same size for all paragraphs on a page. And I'm told (but haven't confirmed) that on Kindle the em is based of the base font size, not the particular font size of the paragraph.
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