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Technically speaking the PRS-700 is not backlit. That would imply that the light shines from behind the screen, as will an LCD monitor, even though this is physically impossible with eInk. In fact the light comes from the sides and is spread out by a diffuser, making it frontlit.
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Okey Dokey...see we need to be a little more technically precise here. Mea Culpa....regardless, the lighting is fairly dim, because of the touch screen the contrast is definitely not as much as the 550. Also glare can be a factor.
But the touchscreen is great!