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The update to the original will include dictionary support--but, as said earlier, only for kepub books (the ones loaded through sync and with Kobo's version of DRM). Books that are sideloaded via ADE, Calibre, or drag and drop will not use the dictionary.
As for the reliability of the WiFi Kobo--I use both. The WiFi version is no less reliable than the original. If you keep WiFi turned on, it will use more battery juice. Turned off, this is not an issue. At some point (and we are definitely not there yet) I would expect that the WiFi will get updates that the original Kobo will not--if for no other reason than the fact that the WiFi has more processing oomph.
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