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I was skeptical of the LCD screen at first, because I generally hate touch devices, but I fell in love with it almost immediately. I love the swipe for turning pages, and I prefer having the touch screen for browsing the internet. Browsing on the Kindle means you have to use the 5-Way, which ends up requiring you to arrow around the page. It's not hard to do, but it felt really slow after having the touch screen on the Nook. I don't notice any significant lag on the touch screen. It takes about a second to engage, and you have to be careful you're not accidentally touching the wrong thing, but once you know what to expect, it's pretty intuitive. You can also change the factory settings so that it turns off after about 5 seconds, so it's not distracting you while you read. Can't say how it works in the sun, as I haven't tried to read outside yet.
The Kindle is significantly lighter, which was really nice to carry around -- but I was a bit worried I'd break the thing. I'd definitely put the Kindle in a hefty case if I bought one for keeps. On the other hand, the Nook isn't actually heavy, it's just heavier.
The K3 does have faster page turns, which is something that's more important to other people than it is to me. K3 definitely has some things I wish the Nook had (the Collections feature, and the ability to email documents to the device, for example).
Overall, I think they're both good devices. The K3 completely changed my mind about the Kindle (was not a big fan of the K1 or K2), and I love my Nook. Either one would be a good choice, it just depends on which features are most important to you.
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