The reason that dictionary lookup is important for me personally is I read a great deal of 18th and 19th century literature, and there are lots of words which were in common usage then which have since fallen out of fashion - eg words relating to articles of clothing or horse-drawn transport to give but two examples. Although one can of course simply guess their meaning from context and move on, I find that it enrichens the reading experience to be able to quickly and easily look up the correct meaning using a built-in dictionary.
That's why I said, though, that although this is a feature that's important for me personally, I entirely agree that it won't be important for everybody.
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