Other advantages: the Touch promises 2 months of battery life--twice that of the $79 Kindle. It has 4GB of storage, enough for 3,000 books. The cheaper model has 2GB for 1,400 tomes.
Honestly, I can't imagine the average user storing hundreds (or thousands) of books on an e-reader, but the added storage is probably a strong selling point.
At the high end, the $149 Kindle 3G (or $189 without Special Offers), is priced too closely to the much-flashier Kindle Fire--videos, apps, games, color display, etc.--to appeal to folks who want a basic e-reader.
Related Slideshow:
Don't Forget the Nook