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Nice rundown JohnClif! I would also like add to the information there a little bit on dictionaries, searching and annotating texts since they were very important features for me in choosing a device. I'm only going to be talking about the Kindle, Cybook and iLiad since the Sony devices don't support any of these features. I have a Kindle so I know that device best.
Dictionary lookup:
The Kindle will let you select a line with the scroll wheel and will show you brief definitions of the "words of interest" on that line, meaning it won't give you the definition of "the". You can then select the word you like for a bit more information. You can also search Wikipedia and the web but that is done through a separate search function and you would use the keyboard to enter search terms. You can have one dictionary which is specified in the settings.
I'm a little less familiar with Cybook and iLiad. I know the Cybook allows you to use keys to select a word and will search your dictionaries for it. The iLiad has a touchscreen which you use with a Wacom pen. I would imagine that's how you select. I don't know how many dictionaries you can have.
Text search:
As for searching the text of your books, as far as I know only Kindle lets you do that. I thought iLiad did, but someone awhile ago said you couldn't. I'd love it if someone could confirm that for me.
Annotations:
Both Kindle and iLiad let you make notes. The Kindle stores it in a separate file. You enter notes with the keyboard. With the iLiad, you use the pen and the note is an image which you will see on the page just like you wrote in the margin. I'm not sure if it will try to OCR that for you or anything.
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