I would advise you to check out the 505 and the 700 side by side. At least in the Sony Store i was in they featured both models - try them and then go for the one you like more (and maybe save 100 bucks for the 505). I am a tech enthusiast and wanted to buy the 700 model myself, but no way!
I actually don't think that the contrast and brightness level of the 700 is the annoying thing, but the glare! In the shop i could bareley read due to the heavy lighting. But even in a darker area the glare was absolutley distracting from the actual reading experience.
As cool as the touch screen is for me the important part is not controlling the device in a nice way but the actual reading experience.