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I am sorry to upset you but for most users notes and annotations are fluff. I don't add notes to my paper books and neither do need it for my ebooks. I also don't use a dictionary for reading and never have. My vocabulary has been picked up through context of reading 1000s of paper books, rarely from using a dictionary.
BTW for the dictionary use, there is no need to select the word, just place the cursor near it and it will detect the word.
The kindle 2 still has no wifi, it still has no SD card support. I have both of those on my nook. And I have already used both features yet I only used the dictionary to see if it works not for actual reading. The nook is more open and easier to work with sideloading content. It supports the more standard epub format and can work with library ebooks via sideloading of content. The nook also isn't vulnerable to Amazon screwing with my device and removing or modifying content without my knowledge or permission.
My nook works easily with my linux workstations (at the office and my laptop) as well as with winxp on my home game machine as well as my wife's Macintosh.
The features the nook has over the kindle are those that will be used every day. I personally don't use the dictionary or notes and doubt I will unless I get the idea to document every discontinuity in a series for some nerd-cred. Or possibly to note every clue or reveal in a series such as the Dresden files. It is important to know how you will use a device because something you do every day is much more important than something you do once a year.
Just my input,
Duncan
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