[fjtorres]

The western version comes with something like ten dictionaries.
Rooting enables adding dicts and fonts but is *not* trivial. Unix/Linux fluency is required.
Installing apps, though, *is* close to trivial.
Since few XMDF-capable readers have made their way west (and Sharp is cancelling their Galapagos line of readers) your approach is very likely the best way to get where you want to be.
On the Sony connect issue: one thing you could do is try installing the Sony reader android app on a rooted T1. At 5MB in size, it should install easily. Not sure if it'll give you library Access or GoogleBooks access, but those you can get through Overdrive's Media Console. Unless you find ways to clear up space, it looks like you might be able to fit just the Sony and Kindle reading apps alongside Coolreader.
Still, that would still be one powerful reader, no?
Sony Japan, Sony-west, and Kindle all in one compact reader.

Have fun!