i couldn't decide btw the 2 so i bought both to compare.
i really like the screen of the kindle compared to the T1. the background on the kindle is noticeably lighter than the T1 and the text is darker and crisper than the T1 also. i'm not sure how well this can be seen in the pic, but i can certainly tell. i've tried all the fonts available on the T1 and they all look less defined and more "fuzzy" than the kindle's.
on the other hand, the T1 is noticeably lighter. an ounce really makes a difference after about 30 mins of holding it with 1 hand. i also like physical buttons for turning pages with 1 hand. also, the glossy bezel of the T1 doesn't bother me like i thought it would. however, i've only used it at night so i might change my mind outdoors.
i don't use the audio features, nor the browser so i don't care about those things. if i hadn't used the kindle touch, i'd think the T1's screen was fine. but unfortunately i have. so each time i use the T1, i can't help but think about how much better the kindle's screen is. i don't know which one to keep now