I'm not interested in a touch screen for Kindle. For me, a touch screen is good for something that's hyperlink-heavy, such as with a pda, where you're checking your calendar, jumping to individual entries, then to contacts, etc. For straight reading, I don't want it. As mentioned, wouldn't want the smudges. I prefer the simplicity of a page key that's right next to my thumb. Also, virtual keyboards don't impress me. For one thing, calibration is often an issue. If you have a bunch of small squares and your calibration is off, it's just a hassle. For another thing, with a keyboard, you can go by feel -- tactile feedback is important to me. You feel the key, and you know when it's been pressed properly. Had a touch screen cell phone, didn't like it, returned it.
I also wonder if the extra layer required by the touch screen would make the text less clear . . . don't know about this, though.
For Kindle improvements, give me folders, and support for tables or spreadsheets.
Kathie