I have a K3 and my wife has a Kindle touch. I will probably be upgrading to a Kindle touch for a few reasons...
1. Smaller than the Kindle keyboard (although not that much)
2. Keyboard on Kindle 3 isn't that great so typing is at least as fast for me on my wife's touch
3. Highlighting is much faster and easier on the touch (I do a lot of highlighting)
4. The buttons can be loud on the Kindle 3 when reading in bed. Obviously the touch is silent
5. For me the touch is more intuitive to use.
That being said, they're both great and some might like the keyboard better
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