The iLiad is more expensive (than other E-Ink readers) and has battery issues. That said, FBReader (which supports a wide range of reflowable non-DRMed formats) is now available for the iLiad, and MobiPocket Reader (for DRMed books) is coming soon.
There is supposed to be a new iLiad "in the 2nd quarter", with a true 15 hour battery life (via a larger battery). I don't know why anyone would buy the original iLiad today with a newer version so close (although there may be few differences other than the battery). I have been following with interest the Iliad Forum, and I will probably buy the new version when it comes out. It will be my third Linux handheld (the other two are a Nokia 770 and a Pepper Pad 3), and one reason I like the iLiad (in the abstract) is that it is a true Linux internet-ready device. The implementation could have been better, but you can't beat something with nothing and there are no true competitors today. With FBReader and MobiPocket it probably will be the best "price no object" e-book reader available.