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The power on/off cycle chews badly on my Touch's battery, I find (it's more than a year and a half old now).
I'm getting better battery life (though not great, thanks to recent firmwares that generate the covers of sideloads every single time they're needed instead of just storing a copy of the image) than when I was powering off every night. I now only power it off if it's frozen or I'm not going to be using it for several days because I've picked up a paper book.
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