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Maybe my eyesight is a bit better, but I don't have any issues reading my nook touch even in fairly dim indoor lighting (equivelent to a 60w light somewhere in the room, not simply in a lamp right behind me).
Just like paper, the more light the better though. The contrast levels are also somewhat worse than a mid quality paperback book, so you can't quite read it in as dim a light and it starts getting unpleasent if the light levels get really low. That said, any light level you'd consider reading a paper book in, you can effectively read on a nook touch (or other eink) reader in.
At night in bed, I find my touch to be much more comfortable than my ipad for reading. With my ipad even on minimum screen brightness, I get a lot of eye strain because of the surroundings being completely dark. With my nook touch and the $20 LED book light I have for it, I don't get any eye strain and can read just fine (since it illuminates the room very dimly as well, and not nearly enough to bother my wife sleeping next to me, or keep her from falling asleep).
That said, if you don't get eye strain from the bright screen in dark surroundings, than something with an active display might be a lot more useful, especially if you never or very rarely use it outside. Outside my iPad2's screen is okay at max brightness, but not an enjoyable experience, unlike my nook touch. The ipad2 is just fine however if I am reading in a patch of shade/indirect sunlight.
Portability and battery life, there is just not comparison.
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