I haven't found it particularly distracting. Sometimes I do notice a bit of glare, but nothing horrid. I did end up putting my nook in a holster style case that is a bit lighter than my previous BN case, so that has cut any glare issues almost entirely out.
I keep my touchscreen at 10% brightness... which is plenty bright for most indoor reading and also on the 10 second time, so it quickly dims and grows dark when reading. I don't find it distracting at all once it is dark and it mostly stays that way, unless I decide I want to change font size or something.
I really love turning pages with the touchscreen! But of course, with the nook you can choose between swiping and button pushing.
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