I've not really tried it with many PDF's, but it's handling of them isn't great if the PDF was originally intended for printing on something like an A4 sheet, in part i suspect because the conversion doesn't work very well, but largely because you're trying to get legible results for something onto a display area that is only about 33% of the size.
That is something I don't think we're going to see much of an improvement on in regards to the "pocket" size ebook readers, and why Amazon are bringing out the DX(?) as it's much more suited to things like manuals/magazine formatted content.
Uvarvu, at the moment not in the UK that i'm aware of, but the technology definitely exists to do it (IIRC several libraries and universities in the States are already doing it).
A couple of sites are however doing out of copyright/freeware books free, or offering in copyright ones very cheaply (if you're a sci-fi fan look at Baen for example, I've bought about 30 books from them, non drm, available in any of the major ebook formats for about £1 each in bundles), and they've got a load of books free (generally the first in a series as a sampler, with subsequent ones costing about £2-4 each).
Talon, i've just seen what i suspect is the same deal, and it's a good one - i paid 195 for my one before Christmas, and about 120 for my dad's one in Feb/March, both were the best prices I could find at the time, so to get it for £180 with the cover or charger is a very good price imo.