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The hand-annotation on eInk is so that you can do stylus markup as if you were using paper and red pen. Some people just prefer working like that.
For me eInk edits are useful on the Kindle because I can read the draft in a form like a published one, take notes, let them stew, and later look them over to see whather or not they still work, as opposed to just editing the hell out of everything on the document as soon as the idea strikes. Not all edit ideas are good ones.
I may still play with this if I find an eDGe on the cheap, although it sounds like you can't do any word processing on the eInk side anyway.
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