Amazon's least expensive Kindle is destined to be popular at $79 with ads and $109 without ads. The Kindle 4 has the same 6" E Ink display as the Kindle 3 (now called Kindle Keyboard) but it loses the hardware keyboard. No, it doesn't have a touch screen; you'll have to wait for the Kindle Touch to get that feature. Instead you'll navigate the device and software keyboard using a d-pad and buttons.
If you generally read novels and don't use much beyond the page turn buttons, this might suit you fine. The latest Kindle weighs only 6 ounces and it's compact too, making it a great travel eReader. It has WiFi but not 3G for downloading books and surfing the web using the basic web browser, and it can hold hundreds of books on internal storage.