I was interested in the Touch but never bought one. Something (intangible), along with the decreased storage capacity, told me to wait. Then Amazon introduced the PaperWhite. I wanted one after seeing the ad on their site. Even though the lower storage capacity was still a concern, seeing the case for it actually sealed the deal (I was not impressed with the cases for the Touch).
I love my PaperWhite! It just works for me and makes me happy. I've adjusted to not having my entire library with me, which to be honest, had recently outgrown my K3 as well.