I think I head of both (Reader an Illiad) on
www.heise.de
Maybe I saw the Reader also on engadget, I don't remember.
But what I do remember is the loud discussion about the "need" for a digital Reading device with my university professor^^.
His thoughts: I don't want to carry another device. I carry PDA, mobile phone, iPod - that's enough.
My thoughts: I prefer carrying a 250g slim device over carrying a 400g 6cm "slim" book^^