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The 600 has a lot of extra features relative to the 300, and most of them are possible because of the touchscreen. Those are dictionary, annotation, freehand drawing, page turning by swiping the finger, etc. The downside of the touchscreen is that it adds a little glare and reduces the contrast, making the letters appear less black. Also, battery life is a little bit worse because of the touchscreen.
Some people are bothered by this, some like the extra features so much that they don't care. (For the record, I hardly notice the glare myself and I'm happy with my 600.) If you only want to change because of size, and don't care about the extra features, you might want to consider the sony prs-505, if you can find one.
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