Some of the 'choose your own adventure' and similar books with active content do not work on the touch. For example, the Lone Wolf books by Worldweaver are not available on Touch, but work on the keyboard. Those are the only example of apps that do not work on the Touch I have ran into. Unfortunately, it is also content I really care about. Patiently waiting for updates.
Regardless, I would go with the Touch. It is just so convenient, gives you so many more options when holding it, as you can flip pages with a tap almost anywhere on the page...
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