I have owned both, and now my husband has my kobo touch. He likes it as it satisfies his basic needs, whereas I have a bit more specific (yet not further above "basic") needs.
What made me consider the T1 as a huge upgrade was how easy it was to sort books into categories and easier library loaning. (downloads from the library directly into my device, wirelessly).
I also found the constant changes with how the Kobo Touch gets used and such via firmware upgrades, a bit of a hassle. I also had the less common situation of being a linux user, and since I often did a "factory reset" which necessitated a new setup each time, it was a hassle to find a windows system to plug into the Kobo desktop to re-"setup". Many people did not have many problems with the Kobo Touch, but I found them frustrating.
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