I find the firmware inadequate on all the e-ink machines, but the Hanlin V3 is the base machine for Openinkpot, so I expect better firmware for the V3 (either factory or Openinkpot) over time. I also have a CyBook Gen 3, but I have given up on any firmware improvement.
I use Cybook 1st gen as my main reader, and it is a backlit LCD with touchscreen. I guess the main issue is do you read in the dark? If not, you won't miss the backlight. If so, you will, sharply. Touchscreen is more convenient, but I can get used to buttons only. I always used the side buttons to turn pages on the LCD CyBook anyway...
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