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I have the Kindle 4 nontouch and also the T1 - and I greatly prefer the T1. I suppose I'm one of the lucky ones who has not had any issues with theirs, but I like the screen on the T1 better, and notice I usually prefer epub formating vs mobi. The Library lending via device is handy as well, and the T1 has more options for text.
I think the build quality of the Kindle is better however and it feels more sturdy. I have no idea how the new Kindle will stack up, but with what's out right now - the T1 gets my vote.
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