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In terms of formats, my understanding was that it does open e-book (IDPF) and openreader format, so the main 2 open formats, which, in theory will be reflowable.
The plugabilty will be interesting - As a fully featured open reader (when it arrives in production) with pluggable DRM, it's likely to appeal to publishers to save on licencing costs and control DRM (but dont let us start a DRM discussion here!)
Jaed - you're right about the content issue - but it would demostrate the capabilities of eInk/iLiad better than anything available today (Notes, annotation, reflow, bookmarks etc)...
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