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The Book Edition has the same capabilities as the 2nd Edition, except for WiFi.
Dictionary lookup is available from multiple dictionaries, but only within the MobiPocket Reader (e.g. not for PDFs). There is no pre-installed dictionary. Use the DRM free dictionaries from here, or buy one or more of the many MOBI dictionaries that are available.
There may be updated software from the user-base in the future, but I would not rely on anything except what exists today. The (larger) battery replacement should only be attempted by those who are very confident of their hardware moding skills, it will void the warranty and could easily fry the device if not done right.
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