It is hard to go wrong with the Touch, especially with the recent software update. Lots more storage, audio, a Home button, and consistent text rendering.
I like my Paperwhite, but I have to manage the storage more carefully and miss TTS sometimes. The lighted screen is not a clear 'win' as I think there's some loss of contrast and I don't like fiddling with the light all the time. It does seem more scratch resistant, to the point where I haven't seen a need to get a cover yet. That makes it lighter and more pleasant to hold for the most part.
I carry both with me most of the time. I can't fit all my ToBeRead on the PW, and for some reason, I like to switch off (cannot have too many Kindles).
And $129 for 3G model is considerably cheaper.
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