Besides the features Harry mentioned, you also get X-Ray, speakers, headphone jack, and an audio player (audiobooks, text-to-speech, music).
The added features are well worth the extra $20.
So if it's that great, then why do I have the $79 Kindle 4? Because I got it for $49 at Walmart. While the added features of the Touch are worth an extra $20, I don't think they're worth an extra $50.
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