The Kindle supports DRM-free MOBI/PRC ebooks from any source, but DRM-laden ebooks must come from Amazon. Its search capability is the best available, and includes an all-documents search which no other dedicated ebook reader has. It currently only supports a single "primary" dictionary, and comes with one preloaded.
The iLiad "search" entry in the E-book Reader Matrix may be referring to dictionary lookup. It is possible to search the current ebook in FBReader on the iLiad, but I don't think this is possible in MobiPocket Reader or when reading PDFs.
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