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We have a K3-3G (actually 2) purchased in October 2010 and a Kindle Fire, purchased as soon as they became available.
I dearly love the K3 and use it every day. I am rarely without it. But I did purchase a wifi Touch a few months back as a backup in case (heaven forbid) the K3 becomes inoperable. The Touch is fine and I mainly use it for night-time reading or when the K3 is being re-charged. The K3 goes with me to work every day and has been my workhorse from the beginning. I leave it in my work bag so I won’t forget it (which I did one day and I was lost). I don’t use the keyboard much on the K3 (just to search for more books to buy in the Kindle store; I never use the browser), so I don't miss it on the Touch. I am fine with touch technology, so the Touch was easy to master. It is a little smaller, so that is a plus for me in terms of holding it for reading in bed.
I don’t use the Fire for reading on a regular basis. For magazines sometimes, but that is about it. My eyes don’t seem to tolerate it well for reading for long periods of time.
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