If you plan on taking a lot of notes or doing anything else that requires typing, the extra cost of the Touch will be money very well spent. But if your focus is on reading, I would actually recommend the bottom of the line model. It's lighter and more comfortable to hold in one hand, and the touch screen doesn't really make the page turning experience that much better.
My thoughts exactly. If I want to type something, I have my phone or my laptop. I read on my Kindle, and I don't need the extra weight, size, price, or fingerprints. I stick by my recommendation of the lowest-end Kindle ($109) as the best present you can give this holiday season (I know it starts at $79, but giving someone an ad-supported device as a gift seems a little tacky).