mcdebbie, I don't have an ipad or other larger tablet to compare, but you might like having the smaller one for games/web etc, as it is more portable. Just think about it before you send it back.
I am obsessively checking Amazon, waiting for an announcement of the newest Kindle line up. Rumors point to July. I still check constantly. I hope they offer a new Kindle Touch with a black or graphite bezel. The current one looks ugly (to me) though there are some cases that cover the bezel. Still, I wait....the Kindle Touch is smaller and lighter than the Kindle Keyboard, and the e-ink touch screen is very nice.
Many people (thousands, millions?) are hoping that Amazon WILL add a collections feature to the Fire. I think that would be awesome. I don't read a lot of novels on mine, but I enjoy looking at all the covers
I use mine in bed at night to look at news, weather, stuff like that, and if I am not too tired, to read. It's great for reading on in the dark. I do prefer my eink for novel reading, and collections.