The Iliad right now is only atractive to users who read a lot of ebooks (manuals for instance), or someone who spends a lot of money in p-books, like i used to. Don't expect to read comics on the Sony reader though...
1 - See my Librie images to see how i used to paginate my texts for the iliad, the sony reader is the exact same size (device and screen)
2 - This happened in the Librie, don't know if it will continue on the Sony reader
3 - The main problem would be the need to convert everything to be read on the reader.
Now that i can simply copy the files to the Iliad i can't go back to all the conversion the Iliad needs. There's easy and simple ways to do it, but not with the same quality functionality.