I find it strange that more people don't mind about dictionaries. I often come across words I only half know the meaning of. Enervate for example. Sounds like it would be making you full of life but means the complete opposite. Things like that are great to look up so as to clear up misunderstandings straight away.
I've been reading ebooks since I had a Palm V and when I got the ereader Oxford Dictionary I quickly became used to being able to tap a word for its definition.
I love ebooks as I am mildly dyslexic so having large print and only a few words at a time means I don't reread the same line endlessly and the whole thing works better.
Touch screen lookup would be great but screen size doesn't matter so much. 6" eink screens are a great improvement on the Palm V. I am 10 years older now and appreciate the lessened eye strain.
Does the iliad support tapping on a word to access it in the dictionary?