Compared the Kobo Touch & the new Kindle (89) as wanted a ereader before Xmas. Finally went for the silver Kindle.
Preferred it as its dropped to 99 (10 more than the new Kindle) but it has a really nice touch screen - a larger library with Kobobooks (plus manybooks.net) & over a million free books - I've downloaded 30 free books already in less than 20 mins.
Also bought a 8gb micro SD card (5 pounds on Play) so I can expand the memory (something you cannot do on the Kindle) plus NO ads.
Its horses for courses a bit like the iphone vs android. Personally I preferred the touchscreen over the buttons and the expandable memory plus a larger selection of books (especially free) over the Kindle. Sadly though the Kindle will always sell more though as its the brand name but I can recommend the Touch 100% if someone is looking to an alternative to using just Amazon.