Hi Harry -
I also have an iLiad and a Reader, and wrote a comparison somewhere on this site (though I can't remember where)...
I agree with most of your points, however, Mobipocket has one function I feel should be highlighted, and that's RSS feeds. I'm able to get TIME and Newsweek stories on my iLiad, as well as some other martial arts related stuff that I like to peruse.
All I have to do is synch the iLiad, and it updates every week. Picking the periodicals is a breeze too. While I agree the Reader is a more solid feeling machine (and has better ergonomics IMO) the iLiad has a great display and I like flipping the pages with the bar.
If I had to choose one now, it'd probably be the Reader because of it's size - but they are both great devices that will hopefully see further development.
Cheers!
LZ
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