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I had an H2O from launch until a couple of months ago. It worked perfectly and I really liked it, no negatives at all. I've now got the KA1, mainly because everyone was saying how great screen is, but also because of the flush screen which I much prefer. To be honest, both are excellent readers, the best I have owned, and there have been many over the years! I would agree with Braid's post, the H2O appears more solid, being slightly smaller and with raised bezels and the screen is excellent. The KA1 also has a beautiful screen, and is slightly lighter despite the screen being larger. For reading on the beach, I prefer the KA1 as sand doesn't get stuck in the bezel and block the IR touch, but the slightly smaller H2O may feel more portable.
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