Some points:
RSS: this is possible through Calibre, simply add a feed and sync when you connect the reader to your PC.
Storage: 16Gb seems the max, but honestly, you almost certainly won't need it. I have now put 130 books on my reader and it's consumed about 60Mb. Now some full-image PDF books will be bigger, but generally this is easily offset by the small size of normal books.
Glare / etc: I really have not found this to be an issue at all. As mentioned often, it merely means you have to tilt your reader a few degrees sometimes to prevent a glare from a direct light source.
WiFi: this would be
awesome, but I don't see it happen anytime soon.
Case: it does indeed only come with some slip cover that is not that bad (reader fits inside snugly and prevents scratches and small bumps), but it won't protect your reader from hard objects crushing the screen if you put it in a bag.
Light: You might have seen my review of the official Sony cover. This would fix two issues at once: a good replacement for the slip cover and a lightsource that's always available and from what I heard will last ages on a single battery. Of course, yes, it's hell'a expensive. Still, I have had little trouble reading at night by the light of a single candle.
Library: the EBL (default software) that ships with it is in my opinion useless. Far better is Calibre, a free open source program maintained by members of this very forum.
Footnotes: I noticed those in a Terry Pratchett book I read appeared at the very end of the book - not so good. On the other hand, others appeared right where they ought to be, especially with PDF books. It really is a case-by-case situation, some books will work well, others won't.
Chapter selection: in the options menu (simply hit the 'Options' button while reading) is a 'Table of contents' option that shows a list of chapters, subchapters, etc, if supported by the book. In my experience, most do. For scrolling multiple pages you actually get a scrollbar you can use to quickly skip to certain parts in the book, or you can enter a pagenumber to jump to. Overall, not bad.
Multiple language dictionaries: no go, at least, not so far. There is a Russian group that seemed to have found a way to hack the device and upload a russian dictionary (I think - my Russian ain't so good
) but nothing official. It's English or English you're stuck with. Of course, nothing is stopping you from uploading a text dictionary to your device and switch to that to lookup words, but that is of course not as easy as the build-in function.