At $699, the iRex also costs nearly twice as much as a Kindle and about three times what you can get a PRS505 for. I have no doubt the 8 inch screen is great, but that's a pretty big jump in price-- especially when you consider that the Kindle is already priced too high for many consumers.
Yes, the iRex is prohibitively expensive but if you buy the 1st edition while its on sale, you can get it for around $100 cheaper than that.
In the end, I justified the purchase because of the features I'm getting over the other 2 readers.
- The sony and kindle both have a 800x600 screen while the iRex has a 1024x768.
- The iRex also has a wacom stylus embedded into the screen which you can take notes with
- The iRex is open-sourced, the developer released the SDK a while ago and there is a bunch of 3rd party free software for it.
However, I can definitely see how the iRex can be overpriced for some people and the sony and kindle could be a better fit for them.
A good resource for ebook reader information is http://www.mobileread.com/ (i'm not affiliated with them in any way) . You can read other people's experiences with them and find out which reader is right for you.