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I don't consider the basic Kindle 4 an upgrade at all, it has half the storage space and battery life. Changing to the Kindle Touch makes sense if you are craving a touch environment, but you are giving up things like landscape orientation and full 3G browsing. There really isn't much size difference between the Kindle Touch and the Kindle Keyboard, 0.1 inch narrower and 0.7 inches shorter isn't going to fit in your pocket much better.
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