It also seemed like the Kindle was more aimed at getting me to spend money at Amazon than enabling me to read whatever I wanted - like all the free ebooks that are available. I've been reading For Whom the Bell Tolls lately and enjoying it quite a bit.
I suspect the Kindle might have a better - more paper-like - screen for reading, but I do fine with the tOuch. I haven't tried it outside much, but I've mostly been able to read it fine. Currently I've got it set to a black background with light grey text.
Having just gotten back from vacation I did decide that neither device is necessarily the best if you're vacationing at a hotel or other crowded location like the beach. It's not like you'd be well advised to leave your Kindle or tOuch unattended on your chair when you decide to take a dip in the pool or freshen your cocktail at the bar. A paper book is less likely to go for a walk than either high-tech alternative.