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I have not tried Kindle but like my Kindle Touch (especially since the 5.1 update). I like to use TTS sometimes and ability to type more quickly than Kindle allows using the 5way. Much easier to select text and navigate IMO. Xray too. PDF support is better as well (using new implementation rather than Adobe Reader tech, it supports PDF bookmarks & links). You get 2GB more storage, and ability to listen to audiobooks, MP3. I haven't had issues with performance myself.
Some people will like having page turn buttons, slightly lighter weight, ability to use water resistant covers (beach & bathtub reading).
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