I don't have a Touch but the touchscreen seems completely pointless to me. Why would you want to have to tap the screen every time (which leads to lots of unintended page turns) when you could just use a button? The best thing about the Kindle is being able to read one-handed (wine glass in the other, natch) so having to hold it in one hand and tap it with the other to go forward seems like, ironically, a step backward. And you are basically NEVER going to use it like an iPad for web-browsing and email and shit so the touch functionality is basically useless. You'll fuck around with it on the day you get it, and then never use it again.
Also, I think the Touch lacks a USB cable (I know the Fire does...) which certainly complicates your errr, back-ups. You can probably still get illicit stuff on there by email and such but mass drag-and-drop via USB or Calibre is far easier.
Plus, the basic Kindle is smaller, lighter, faster, cheaper. It seems like a no-brainer really. If you want browsing, get a real tablet or smartphone. If you want an ebook reader that you can take everywhere and not worry about (because it's cheap!), get a Kindle.
