Sharp introduces a new electronic dictionary in its Papyrus line that has a color screen and can display photos.

The Sharp PW-N8000 features for instance the Encyclopaedia Britanica that contains photos that can be viewed on a 4.3" 480×272 pixel screen.
A query history is stored on an SD-card. There are other dictionaries available of course for this new Sharp Electronic Dictionary.
This model is getting very close to a PDA. There is no price yet available for the PW-N8000, but I do not think it is much cheaper than a decent PDA.
More details in this Sharp press-release (Japanese).