Recently I finished my habilitation thesis. I wrote it in LaTeX without any trouble, including two reference lists, a lot of formulae and figures and putting the published papers at the end (it's a socalled "cumulative habilitation", where you write a longer review-like summary of the published papers of the subject and then attach these papers). Of course, I didn't do the printing with a publisher but just sent my pdf to the university printing office, who also bound it for a very good price. It's of course not as nice as a real book, but at least all typos and mistakes are my own and not that of some production office of a publisher...