I established by my own tests, and had it confirmed by Kobo tech support, that the screen on the Kobo Touch is 600x800 pixels @ 167 ppi.
Nowadays I usually edit the eBook and set the cover to that size and ratio, and find it gives a good result. Since colour covers are often less clear on a monochrome device, I generally convert them to greyscale and shift tones to raise the contrast as well.
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