I'm really quite fond of my Kobo Touch. I find page turning quite responsive most of the time. Occasionally, it seems to "freeze"... in those cases, I usually find switching from a "tap" to a "swipe" (yes, you can swipe to imitate flipping a page over or back) clears it up and I can go back to tapping at the sides.
The lack of collections can be bothersome. I can't speak to any hacks to fix it... I believe they exist, but I haven't explored them. I'll note that you can search your books, and I find that searching for the author works decently well.
taming has a good point that Kobo may be gearing up for a new device. Still though, I think the price point right now is awesome. $99 CDN for the Touch is good value for money, imho.
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