I'm willing to pay extra for the iLiad, once the following are addressed (and most of this is promised by iRex, so I'm just waiting a bit):
1 - Support some kind of DRM content, so I can buy new books
2 - Write on PDF functionality - this would be a HUGE benefit to me. I have scads of PDFs that I need to read, annotate, and track annotations on, and this device would do the trick. People who just want to read books are quite right that the Wacom screen adds more expense and power consumption than they should have to pay, but I would actually use it.
3 - Web browser for static content (text, photos, etc.) with HWR enabled for browser forms, preferably also with RSS client, hooked up to the wireless/ethernet - what's the point of spending money and power on networking features if you don't use them? Might as well have an email client on there, too, though a web browser would effectively give me that.
4 - pen calibration/pressure sensitivity support - again, the Wacom screen raises the cost and drains power, so make the best use of it possible. I want to be able to sketch, diagram -- do anything I currently do with my paper notebooks.
I also need to see the screen first-hand to make sure it's readable to my eyes. Maybe I could see a Reader somewhere and make comparisons based on that, since the technology is more or less the same.
I appreciate the concern about the glass screen. I plan to make or buy a foam rubber "wetsuit" with a hard front cover to help protect mine if I get one.