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It may not support more formats, but it handles them better IMHO. I've viewed the same documents on the Reader and the iLiad. Not only were they bigger and more readable on the iLiad, but with the rotate/zoom/continuous mode it is much easier to deal with regular documents without first manipulating them on a pc.
Also, HTML support is a big deal for me. I just converted my first CHM file today (I have a lot). It worked *very* well. The pages are easy to navigate, links and toc work, I can increase text size and view pictures.
The iLiad has a 1024x768 display, the sony is 800x600.
Now don't get me wrong, I don't think the iLiad is quite ready for mass consumption, but for my uses, it's leaps and bounds better than sony's reader.
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