Personal preference. Even discounting the frontlight, for me, text is too fuzzy for comfort at lower than ~200 ppi so I consider the Paperwhite worth the premium.
Mind, I do own non-lit readers (e.g. Sony PRS-350 paired with the lighted case) and I have to say, I find built-in lighting on the Paperwhite super convenient. I can't abide shadows and uneven lighting on my reader while reading in the dark.
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