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I have a Kobo Touch 905B, which has been giving more and more problems. In the end, I gave up, and bought another e-reader. In the UK its not so easy to buy one that is not Kindle or Kobo. I bought another Kobo (Glo HD) which works very well.
About losing your books: if you bought books from the Kobo store, you can download them again at any time, so they won't be lost. The same probably goes for books bought from other vendors.
If you have a PC, you can connect the Kobo to it, and copy all the files to a folder on your PC.
I hope this helps.
PS The Kobo Touch is not a conventional touch-screen. I think I read that there are many beams of infrared light shining across the screen, so that when you touch it, the lights that are interrupted tell the device which part of the screen you touched. I suspect that this system has failed on my Touch. The new ones have proper touchscreens, similar technology to a tablet or smartphone.
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