I've only had my Kindle3 for a few days, but my opinion...
Touchscreen:
No. I actually bought the Kindle because it has a real keyboard. I rather have a small, real keyboard instead of a usually unprecise touchscreen. Especially if I wanna read (!) on that touchscreen. I can't have dozens of fingerprints on it then...
Bigger screen:
Always nice, but also more expensive.
A few things I could think of (although I don't see them as vital):
- A faster processor that increases speed
- A bigger harddrive or the ability to expand it by SD-card
- Expansion of the audio-experimental-program. A manageable tracklist, the ability to go back a track instead of only going forward...that sort of thing.
Other than that my first impression of the Kindle3 is very positive, so I currently don't see much room for improvement. But maybe that's just my starter enthusiasm...