I thought about comparisons overnight. Call me a fanboy, but the ipod Touch holds up surprisingly well.
INTERFACE
The IPT has a fluid, reliable touch interface that is likely to become even better come 10.4. With KF, we don't know for sure yet. Things look good, but without an actual hands on by an independent reviewer., that's a question mark. Generally, sub-$249 tablets have had poor and unresponsive screens.
IPT+
KF ?
AUDIO
IPT good only with earphones
KF likely same
CAMERAS
IPT ++
Two crappy ones beat none. And in fact, I've seen pictures taken with the IPT and my eyes didn't melt.
BATTERY LIFE
4-5 hours for the IPT
6-8 for the KF, according to specs
KF+
STORAGE
The bottom line IPT and the KF both have 8Gs with no removable storage. They both will have impressive cloud storage options.
DISPLAY
The IPT screen is smaller, but everyone who has experienced the Retina display says its superior even to e-ink. I'm calling this a draw.
ECOSYSTEM
This is where the rubber meets the road. Neither of these are great standalone devices but they both hook into great ecosystems.
1. SHOPPING
Amazon is Shopping Central for just about anything. Apple is limited to digital content, but its digital content options are broader.
2. SOFTWARE
Amazon has a nice little app store , but the Ios App Store is well, THE APP STORE.
3. MUSIC AND VIDEO
Apple has a broader selection, Amazon better prices. Apple has Netflix and Pandora apps, Amazon doesn't and may never.
4. BOOKS
Here Amazon is best. Apple, again, has more choices in that you can shop anywhere and read it on the IPT.
5. RADIO ANd PODCASTS.
Through ITunes, you can get a vast selection of radio shows and pod-casts. Nothing like that for Amazon, AFAIK.
More could be written, but I've got chores.
.
I'd have to say that it's not the knockout I originally thought it would be for the KF.