You can replace the standard dictionary on the Kindle, but you can only have one "primary" dictionary at a time. Also, there are very few commercial dictionaries available yet.
There are many MobiPocket dictionaries for sale, and you can build your own with a bit of work. MobiPocket generally allows multiple dictionaries and will search all of them. Of the E-Ink devices, the Gen3 and the iLiad support MobiPocket and its multiple dictionaries. You can also use the same MobiPocket dictionaries on a Windows PC (but not a Mac or Linux desktop) and on, say, a PDA (MobiPocket allows 4 devices to be registered per "secure" dictionary/ebook).
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