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I think Sony PRS-600 may be what you're looking for. You can highlight, annotate, and dog-ear your text book. You can highlight using your finger or the stylus. It also have a built-in dictionary.
You can get a refurbish one from Sony for $264.99 or get a used one from Ebay. There are few with Buy It now with $249. Some used one are going around $200.
Although, the screen for DR800SG is nice. There are quite a few figure that is not available at this time (i.e., scribbling, annotate, zoom, etc.) and no dictionary is planned for the future.
The PRS 600 screen is not as clear and has glare due to the touchscreen. However, all the features it has are rock solid. Work very well. It does have PDF zoom so you can zoom into your charts and diagrams.
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