We've had the Kobo Touch Edition eReader in house for more than a week and have been putting it through its paces. The Kobo has a 6" Pearl E-Ink display with IR touch sensors that work well, and it's quite affordable at $129. That's $10 less than the Barnes and Noble Nook Simple Touch and Kindle 3, though the Kindle 3 with Offers is the least expensive at $114. The Kobo was available at the soon defunct Borders chain, and is or should be at Best Buy and Walmart. It's backed by the folks at kobobooks.com, and they have a solid ebookstore with a wide selection of popular books as well as public domain titles.
The Kobo Touch, like the original Kobo (minus touch), is an ePub E-Ink reader that works with standard Adobe Adept DRM ebooks such as those from kobobooks and the public library, but not B&N ePUBs (they use a difference variation of Adobe DRM) or Kindle books. It also supports PDFs, mobi and various image formats. This is a basic WiFi reader with access to kobobooks.com for book shopping, but you can use the Webkit web browser to download books from other sites in compatible formats. It does not have audio, so no music or audiobooks here.
Here's our video review of the Kobo Touch running the latest 1.9.9 firmware. Since its release not too long ago, the Kobo Touch has received several firmware updates that improved screen contrast, overall speed and added the option to choose when page full refreshes happen (1-6 turns). These updates have definitely improved the ereader, but we'd love to see more to address little bugs that remain. Our full written review will follow next week.