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I have an iLiad (my second one in fact, due to a sad theft story), and I love it. It's excellent for PDF's I make myself and now has what may be an even better format in Mobipocket .PRC files. Either PRC or iLiad-optimized PDF files can be obtained from mobileread.com.
It works reasonably well for reading "standard-sized" PDF's, but it's not ideal for doing that. I do like to use it for reading much talked about reports: Supreme Court decisions, IPCC (Global Warming) reports, and other documents you wouldn't want to kill 100 pages worth of trees for. But in my experience, the most pleasant reading experience comes from PRC files or the PDFs I print myself (or obtain from Mobile Read). When printing myself, I use a defined page size of 5.5 x 6.68"; this is a lot nicer than reading a file printed for a standard 8.5 x 11" page.
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