I think the battery replacement option is more of a "peace gesture" than anything elese (and if I remember correctly Angel even confirmed that suspicion in an email conversation we had a long time ago).
The bigger battery won't really make the die-hard battery-life-freaks happier and it won't so anything for the people who are already happy with their device either (obviously). It just shows that iRex is doing something to at least reduce the gap between what the promised and what they delivered.
Why they can't redesign the device hardware to make suspend possible or change the battery life figures on new Iliad-boxes is anyone's guess...but I'd say that these features will probably be included in the Iliad 2.0 (the version that is selling now is more like a version 1.1), along with who know what else...it'll probably make us all go made with hope and enthusiasm like the last time...oh what fond memories...
While I can't forgive iRex for the obvious mistakes they made, I am actually quite happy with the way the device has progressed, especially the openness for user-developed applications and the addition of mobipocket really brought me back to the Iliad after I had almost completely given up on it.
And who knows...there might yet be a "big bang" in Iliad development that brings a solution to the battery-life problems...stranger things have happened after all...