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Nope, I never even considered that the casing might be distracting until you mentioned it. The LCD hasn't been a problem either. You can adjust the brightness of the touchscreen as well as the timer for the touchscreen if you have any issues with it. I've used my nook pretty much exclusively for reading since I got it in January (usually at least two hours a day, often much more) and I haven't had any eyestrain issues.
The only problem I had with it was when the right page turn button cracked, but I was sent a replacement within two days of my complaint.
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