gdgt

I had the $79 Kindle (2011) for two weeks and fell in love with it. Then the Kindle Touch came out and I had to try that. I immediately returned the Kindle (2011).

My main concerns about a touchscreen Kindle were:

1.) How would the Kindle interface translate to a touchscreen? The answer is, beautifully.

And...

2.) Would the screen get all gummed up the way my phone / iPad screens do? The answer is no. It's perfectly matte and wipes clean easily. It's *not* a fingerprint center.

In short, I'm just a few days in with my Kindle Touch and it might just be my favorite gadget. It's a steal at $99, the "special offers" (ads) are unobtrusive and not a factor and the device performs almost perfectly. I *love* my new Kindle!

The touch screen does not add any glare because it's not actually a touch screen. It is an E-Ink screen identical to that on its non-touch siblings.

The touch functionality is created by some slender infrared sensors on the sides of the screen. This is also why the Touch's screen looks slightly inset compared to non-touch Kindles, where the screen is nearly flush with the bezel.

The $79 kindle will probably be good enough for everyone. However, that kindle does not support audio of any kind, so if you want to use text to speech, or listen to mp3's, or listen to Audible content (which is fully supported on the other kindles), then the cheapest one is not for you.
The touch seems like it will be nice, but remember, this is not capacitive touch like a iPhone or smart phone, this is infrared touch which means that anything that hits the screen will turn the page (i.e. your finger, a cup of coffee, anything it touches in your bag). Keep this in mind if you are going to carry it around without a cover. I have also heard that it is easy to turn on accidentally as well, which makes accidental page turns a possibility.
I'm waiting to hear more about the Touch before I make a decision.
The biggest feature I am excited about is the X-ray book feature, but I haven't seen anyone talk about it yet. Has anyone tried that or have experience with it?

one advantage to the Kindle keyboard 3G over the Touch 3G is that the Keyboard version can use its 3G for free for any website, where as the Touch 3G is amazon only. You can use the Touch 3G's wifi for any website however. If you are not looking at a 3G version, or this is not a concern for you, then Kindle Touch is the way to go.

Why not get the entry level Kindle? You get the same screen on all these models; and you really don't need a keyboard if you are using the device to read books. At least that was my thinking . . . and I have no regrets. YMMV

Touch. I have the keyboard version and I never use it (the keyboard). I don't know about the 79$ kindle, for only 20 dollars more you get touch functionality.

I only use the keyboard for creating collections or looking up words in the dictionary when I'm doing a crossword. I avoided touch sensitive screens because of their reflectivity - does the Kindle Touch solve this problem?

I just bought the keyboard
+ hardware buttons on either side (I find it easier to hold and keep finger ready to press for the next page)
+ keyboard made it easier to input registration info and emergency webbrowsing
+ keyboard at the bottom raises the screen for my favourite reading position: lying on the back with the head propped up and the kindle resting on my chest
- it's a little heavier, bigger...
Basic Kindle was missing audiobook feature, but the + list above are my reasons not to buy the touch

I agree with MtnSloth. I think the base model will meet pretty much everyone's needs, and I don't see how the touchscreen will add that much more functionality.

One question: I'm planning on buying the Kindle Touch and have been reading all this time with the app on my iPhone. Every time I don't know a word, I just touch it for a second and the definition comes up. How does this work on the cheapest Kindle, on the Kindle Keyboard, and on the Kindle Touch?