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I do not use the SD card and someone may have better information, but I don't think you can move books from the SD card to the Reader's internal memory through the device itself. I believe these transfers can only be done via the computer. When there are books on an SD card these books should have a separate notification telling you where they are stored.
Sony Readers have a factory reset under settings in the main menu. Someone may know if the original excerpts are restored when doing a factory reset.
I find the touch screen to be very responsive. I mostly use the page turn buttons as my normal reading style it to hold it in my left hand and read one-handed. The times I do use the touch screen swipe to turn pages, it is very quick and responsive. The Sony has an included stylus as well.
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