Ah! I loved reading about your first impressions. I got one myself (book edition) a few weeks ago, and it felt much like that
Haven't yet done much in the way of installing anything except the developer package - and it was grueling - first figuring out it couldn't be done without IE on Windows - what a world we live in! Then all the angst of doing something you sorta know how and why but not quite, like leaving really important stuff in the hands of others. Then I got sidelined by a holiday and the lack of a CF card reader. I'll get a card reader later this week though, and then I'll be able to do a backup so I can continue working with the device.
So far, I must say I think I will primarily be staying with PDFs, but that's because I mostly read fanfiction or open format books and thus are able to create my own PDFs in exactly the size and format I like. But I will still be looking for that perfect HTML reader/browser.
Good luck with your new iLiad!