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It is not a real touch screen like the iphone, you have to use the wacom stylus. Yes it is possible to write on the pdf files (i haven't tried writing on other format).
As for the wifi, I've only used it a couple of times for firmware updates - that's it. It is a nice feature but not necessary at all.
The iliad is a good device for reading but before buying, do consider that 1) no more firmware updates from Irex; 2) if battery life is good sufficient.
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