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Since I discovered the new improved Stanza and especially the ability of reading on black background with white letters - I'd prefer a slightly orange/yellow tone like on the 770 but white will do - I have been using the iTouch more than the 700 for some books, with the 700 more for others.
It's essentially about text flow vs speed of reading - I read faster on the Touch since I can scan the whole screen at a glance, but there are books not suitable for that where I need to have a bigger chunk of text for scanning.
Since the Touch is my main portable music device, I would always have one such for the car irrespective of e-reading, so the question is if that would be enough and the answer is mostly yes, but I would always want a bigger screen device - needs not be eink btw - for selected books, so in a nutshell I would definitely give up the 700 since the Touch is more versatile and is good enough for most ebooks but I'd rather have both
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