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The new Nook is superior to the Kindle 3. For example, the Nook is much easier to use since it has a touchscreen interface, is faster, has a longer battery life, has several features that the Kindle doesn't, and supports more ebook formats. I would be surprised if Amazon didn't introduce a black and white e-ink ereader that at least matches the Nook on the more important features.
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We've been here before. I don't think Touch alone is enough to warrant a new generation. Without some sort of screen/contrast improvement, I just don't see it happening. They're not going to bother "matching" the new Nook... I think they'll wait until they have something that
surpasses the new Nook. Either way, I think the tablet will have their focus for the coming Christmas season.