I owned an iLiad for a while and, while it was GREAT for reading, its note-taking capabilities were not at all up to snuff for heavy useage. So, yes, while it CAN do it, I certainly wouldn't recommend it - the tech just isn't there. A few of the note-taking issues:
Slow to load sometimes
Had to specially format PDFs to give enough room to write in (a big deal if you read dozens of articles/week!)
Not all articles (in fact, not nearly enough) worked well with the special formatting
Pages are "smaller" than an actual notebook
Highlighting didn't really work
Now, again, the iLiad is a solid product, but I use composition books again now alongside a PRS-300 for leisure reading. I would argue NO solution is adequate yet for digital note taking.