I suppose they want there to be a noticeable difference between the basic model and the others, and that is why they’re keeping the crappy resolution.
I was looking at buying a refurbished Kindle 4 yesterday, can get both this and cover for half the price of this one, and in some ways this was my favorite reader. It was sooo light, with wonderfully placed buttons, and battery actually did last a month of actual reading! (And it had the progress bar which I loved).
I was still tempted by this one though as a cheap take everywhere reader, especially as it comes in white. I haven't had a white ereader since my very first kindle, the kindle 2.
At one point I had both this and the kindle 4 in my basket, and took them out.
The contrast of the kindle 4 was also excellent, no light layer, no touch layer. I’m still tempted by the new one though...