I would love to see a multi-touch, e-ink reader that would function similar to the LCD readers out there. Like you said, there's just something a little too finicky about the current generation of touch screen e-ink readers. I did try out my mom's new Sony WiFi Reader and thought that it was quite nice; although, not enough to buy something new.
Does the Fire work well for reading? I'm reluctant to get a tablet since I already have enough distractions in my life. I've play with the Fire on display at my local Target whenever I'm in there, but it just hasn't clicked with me. I can't quite put my finger on it, but something about the user interface bugs me.