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Sleep mode turns off the IR touchscreen interface which does consume power. Also, all these e-readers have a background processor power draw (unlike the screen itself which draws no power) that will discharge the battery in less than a month (varies by device, not sure for the 650). If turned off completely the battery will drain much more slowly. Does it matter? IMO, only if you're camping or otherwise away from power for weeks at a time.
I only use the sleep mode and I think that's fine as long as I can charge it every week or so depending on how many pages I read.
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