I own both and use both almost daily. I use the K3 at the gym, as I find the actual buttons easier to use when my fingers are sweaty.
Otherwise, I prefer the Touch. No buttons mean no noise when turning pages, which is nice at night, and I really like just touching a word to bring up the definition, I use that a lot, and it's so much quicker than using the toggle button. The lighted case for the Touch is much nicer than the lighted case for the K3 as well.
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