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For me iRex is no competition to Plastic Logic's offer unless it has an inhibitive price tag or there is no possibility for note-taking.
Touch layer shouldn't dim the screen in my view - or at least I didn't experience that on an iPod Touch, so it can be done properly as well.
The biggest problems with the iLiad: battery life, fragile screen, bad design (not flat or compact enoguh), so can not be used on a table as a notepad. In my view, the design of an ipod touch (the first generation) should be taken as the basis (thin, solid) and enlarged to accomodate a 8-10" screen. Plastic Logic's design seems close enough to that.
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