I use the Sony PRS-700 for reading transcripts. I digest the transcript by highlighting a few words from each page.

Is it possible to print out the highlighted text with page numbers?

I don't see how, but then I haven't read the manual all the way through yet.

If it is not DRM'd then you can open the text on the computer using the Ebook library software (or anything else), and copy and paste it into a document.

I've done this successfully. But I don't have a 700, so I don't know whether the highlighting would be preserved in the document.

I can't figure out where the highlighting is preserved.

My thought was to be able to highlight text for study purposes and then just print out the highlighted sections, preferably with page numbers as to where the highlighted section came from.

Is this impossible?

This may be one area where the Kindle has an advantage over the Sony 700. On the Kindle, all highlighted text is copied into a "side file" which is a plain text file. You can then transfer the file to your PC over the USB connection. I use this technique to snap out quotes to go into reviews.

I can't figure out where the highlighting is preserved.

My thought was to be able to highlight text for study purposes and then just print out the highlighted sections, preferably with page numbers as to where the highlighted section came from.

Is this impossible?

An interesting point. The bookmarks and notes are stored in a
non-user friendly xml file. Its buried deep but I don't see why this
can't be a future Firmware ROM upgrade to include txt files for
later viewing/printing. I can plainly see how easy it is to accumulate
lots of notes.