Thanks for this thread.
Although I was one of those badly affected by the storage error debacle I voted that I am happy with my Touch.
During the weeks that I waited for the update to fix that problem I did wonder if I had made the correct decision to purchase the Touch and briefly considered getting a Kindle as they are now widely available in Australia. However I don't like the keyboard and the price is $100 more than I paid for the Touch ($219 compared to $128 which included a $10 Kobo gift card.)
I do wish Kobo had been more vocal in reassuring those with Storage Error problems that they recognised the problem existed and that they were working on it. Even after reading on MR and Get Satisfaction that a firmware update was on it's way I was told by the customer service (!) person dealing with me that they had no idea what I was talking about and that I had obviously caused this problem by doing something wrong.
That type of response doesn't help Kobo's reputation and if I hadn't been happy with my original Kobo for the previous 12 months I most likely would have abandoned Kobo as a total waste of time and money.