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If you're just wanting to read fiction, then better to go with the Sony. I used to have an iLiad, which was great when I was at university, since I could read academic articles in PDF format and annotate them with the stylus. But the short battery life (about 12-15 hours) and long boot time (about 45 seconds) is less than friendly for fiction reading, as you can't just pick it up and read for five minutes in a convenient way. Once my course was over and I didn't need to read & annotate PDFs, I traded it in for a Bebook -- being able to leave it switched on without worrying about the battery being dead when you come back to it is perfect for fiction reading.
In reply to Gouzos -- PDF is not perfect, but is actually pretty good compared to other machines. You can blow up the page as big as you like and scroll around it, and the 1024x768 screen resolution and 16 shades of grey makes graphics look very nice. And there's no problem with lack of contrast -- its not a touch screen you use with your fingers, but a Wacom screen that you write on with the inbuilt stylus, and the screen's as bright as any other e-ink screen.
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