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I have no desire to upgrade from my K1 to a K2 but I would be perfectly happy with a K2. I like the new form and the new case style. I'd be fine with 1.5G of memory and am not really perturbed about the battery, either. If my K1 broke, I'd happily replace it with a K2. However, if you're looking to save money, the K1 is still a great reader and can be had for a lot less right now. My favorite things about the Kindle are there with either device. I love that I can get a free sample of a book, read it, and have the whole book in less than a minute. I buy books as I want to read them with a pretty good certainly that I'm going to like and finish the book. I don't buy books ahead of time thinking they're what I want and often being wrong. I love the dictionary lookup, the ability to search and the ability to annotate my books.
The 700 has some compelling features but it would not be suitable for me. I like that you can now search your content and annotate but they still don't support dictionary look up. The old 505 didn't do any of this which is why I didn't buy one even though I loved the looks and saw it long before the K1 was released. I like that they also natively support DRMed PDF and ePUB since a lot of the library books available are in those formats. However, there aren't really enough books that I want available to make it worth it to me versus the far greater selection available at Amazon with free samples, wireless delivery and lower prices. The screen is also a little fuzzier. I'm not sure if it's the touchscreen or the built in front light that does it, but it's not quite as crisp as other e-ink devices. I'd rather use a booklight and a joystick with a crisp screen.
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