What kind of content does the book have? Is it reflowable or fixed in layout? "Fixed" means that the layout should remain exactly as you designed it (important for picture books, design-rich layouts, etc.), while on the other end of the spectrum books such as novels will automatically adjust their text layout according to the device it is read on (and may be affected by a device's reader preferences as well).
Is it important that your images stay "put" or can they be flowed automatically with the text flow?
In any case, AVOID the Adobe online publishing option. You will have no control whatsoever over who can or cannot view the book. It cannot be easily monetized either, or secured from viewing. The book resides on Adobe's servers, and again you have no control in that regard.
The ipad document format you selected is actually not a bad one at all and meant for mobile devices (letter is for regular printed letter formats) - as long as you export a reflowable epub, anyone should be able to read it on any device with just about any epub reader. Fixed layout epub is still much, MUCH more problematic. Only iOS can deal with those properly without installing a third-party epub reader.
Hyperlinks work without issues in an epub. Your books does consist of many images, and only you can decide whether a flowable epub is possible (a flowable epub with images behaves a bit like Word and images: not much layout control, and the images are put between paragraphs. (There are ways around this for a slightly better layout, but it takes too much to explain here.)
And epub can be uploaded to your website space, and the link secured behind a paywall. I noticed that your website runs on Squarespace, which has an eCommerce option: this should make it very simple to offer your book for purchase on your site.
If the layout of your book is important to maintain, then a PDF (ensure to secure it by disallowing printing and copying content) will probably work better, but unfortunately PDFs more often than not prove to be a horrific reading experience on mobile devices.
It is of course not an issue at all to provide your customers with multiple options, because a PDF works very well on desktop machines and larger tablets, while reflowable epubs read well on smaller devices.
As Derek points out, it is also possible to export your books as HTML, and put those pages online (behind a paywall and a user login protected space). The trouble with that is that users will have to be online to read the book, and users with a traditional ebook reader will not be able to access it. It could, however, be a third option. With HTML the layout either flows or is fixed (with the same caveats as epub mentioned above).
Aside from these considerations, you must also keep the size of your book under control. This mainly means that the images must be exported at the correct resolution, and this is quite important to keep in mind when publishing ebooks with many images. The last thing you want your users to deal with is a monstrously file-sized ebook that takes ages to open/download, or, in the worst case scenarios, will not evey load correctly (or at all).
If this sound complicated, check out some of the ebook publishing courses on Lynda.com.
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