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Hardware feature-set, Iliad, hands down. My aging eyes need a bigger screen, and the notes features will eventually be compelling.
I'm waiting for irex to get to a stable and finished product, though. I've been an early adopter on ... well, pretty much everything since the early '90s, but the e-book market has me acting conservatively.
Having voted for the Iliad, I was ready to pull the trigger on the Sony reader until they ran out of stock before I could even move my mouse to the order button. My current thinking is, the Sony reader will function as a useable place-holder for the shorter term, and I can sell that and upgrade to an Iliad when it's stable, and a little bit less of an adventure for a US-consumer.
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