In the US, the iLiad's $699 price has been higher than other E-Ink devices but somewhat competitive (e.g with $399 for the Kindle) given its added capability.
However, if the Astak Mentor's projected price of $349 (or less) for a 9.7" screen, WiFi, touchscreen, and bluetooth is achieved in September then the iLiad (or its successor) will have to come down drastically in price. See the thread Astak Mentor eBook readers with WiFi and Touchscreen options
or, for a summary, Astak Mentor
in the wiki and in the E-book Reader Matrix
The Mentor will run WinCE, and may not include MobiPocket Reader (it will include eReader support, and MobiPocket wants exclusivity). So it is certainly possible that the iLiad's software will be superior, but there will be other devices based on the Vizplex 9.7" screen and $350 for the Mentor sets the pricing bar for all of them.
It is also possible that the Vizplex 9.7" screens won't be available in quantity by September. Currently, there are not enough of them to sell $4000 Prototype Kits (8" screens are already available with these kits).