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I think it depends on what you use the device for. I bought my ereader to read novels. I never expected to do much annotation etc, I just wanted a reader that wouldn't get in the way of reading. To that end I was much more attracted to the simple and uncluttered interface of the Sony PRS-650 and believe I would have found a built-in keyboard quite distracting and the extra unnecessary size annoying. Most of my choice was based on other factors (not wanting wireless, not wanting to be tied to Amazon, wanting epub support, liking the sturdy build of the Sony, etc), the touch screen was barely a consideration ... but do I think the touch-screen feature allows the device to be as visually and physically simple as possible and makes the Sony very good as an ebook reader. I have grown to like double-tapping on a word to see in the dictionary, but don't rely on it enough to want to pay specifically for that feature.
I recognised I was paying a premium for the Sony hardware but didn't think about it being related to the touch-screen - I believed the premium was there because I was not going to be tied to a particular book-store. So it was not touch, per se, for which I was paying a premium - but obviously touch has had an impact on making the device more attractive to me.
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