@ the Physics Geek:
I may be wrong, but I believe that the I-Rex Illiad performs a number of those tasks. The Kindle has the "whispernet" and dictionary look up. However, both devices are a bit more costly than the SONY Reader. I also believe that there was a post on the forum relating to iRex working with some schools or social groups to do a mass-market test somewhat similar to SONY's work with PENN.
SONY seems to be marketing their product aggressively, after offering the device like some back-alley huckster at first (psst...wanna buy an ebook, kid?). They seem to have embraced the notion that this product could make them money. It also appears to me that SONY is after the mostly fiction-reading crowd, non-academic crowd. At least until they started this program. ;-
I see that you own an Iliad. You can let me know if I'm right or wrong about searches. Though it seems that the efficacy of the looking-up bit would be more based in the actual document and what relevant links were written into it.
I graduated with an English degree and a minor in Russian, so I am most likely wrong about all the technological bits.
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