If they do put in a dictionary for sideloaded books, it should be interesting to have a French dictionary also, since the Touch is said to be the first International reader. Using a English dictionary on a French book is of little use.
Maybe that is why they are waiting to implement it, since most of the books on the kobo site are English for now. When they will expand their offering into other language they would have to have something telling the reader the language of the book so the reader can use the right dictionary, which would not be available on sideloaded books.
For me the lack of dictionary is an added feature that is not a deal breaker, but if I was to use it would like french and English dictionary since not all my books are English.
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