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It's... both..., depending on how you prefer to look at it.
Hardware-wise, it's quite an enhancement (higher screen resolution + frontlight), and also a step back (no audio, smaller storage).
Software-wise, it's just an enhanced version of the Touch Firmware, which accommodates for the higher screen resolution, plus the light (and minus the audio).
I consider the Touch and PW to be "pretty much the same, but with different hardware capabilities". And that seems to be Amazon's point of view, too, since both now share a (mostly identical) minor firmware version.
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