The weight difference is about an ounce and a half.^ That was definitely the experience I had when I got my Kindle. In my experience, just about everyone that has either a Kindle or a Nook is completely satisfied with it, and tends to prefer it over the other one.
To me, when I played with it, the Nook felt kind of cheap, and heavier, and I don't think the LCD screen is worth the weight and lower battery life. But I'm glad you're happy with it.
The benefits of the touchscreen are really in navigation and when using the secondary features like the music player and games. I also use the screen as my primary way of turning pages (swipe your finger across the screen when it is dormant). With the screen calibrated to turn off quickly and all the wireless features turned off you can pretty easily get a week of just reading (for a few hours a day), usually more. If you really need that 11th day of reading, there isn't much argument on either side that the battery will last longer on the Kindle but that seems a small boon to me.
Cheap is not a word I hear said about it often though, most people I talk to say it looks and feels like a mac product. I wouldn't go quite that far, but they were certainly trying to ape a bit of that style in both the product design and the UI.
The "Nook Lite" has just passed FCC testing, which means we will probably start seeing it by the end of next month and the dedicated iPad app is now out(as opposed to the previous iTouch/iPod one from last year that worked on the iPad also), which is getting rave reviews from the gadgeteering web sites out there.