Jodi,
It is plastic but it doesn't feel cheap to me (as I read somewhere on this forum). I think the black of the iLiad v2 has a rubberized feel to it (from what I have heard) and so it should probably feel even better to the touch.
I played with all that iLiad had to offer for a couple of hours or so. I wanted to play with installing third party applications etc. but my CF card arrives in a few days and I will wait for that before I install any third party software.
I looked at the Deluxe cover but I don't like magnetic straps and so I didn't get that one.
Looking forward to hearing your first impressions