Do you see that button below the screen? That's the Home button, and it's only one on the front of the device. Kobo have gotten rid of the 4 buttons on the edge as well as the d-pad that was on the front. Everything's done on the touchscreen now. This new ereader was developed in partnership with Freescale and IDEO. Like the Kobo Wifi, the Kobo Touch is running on a Freescall CPU.
BTW, they're not killing the old model. It's staying around with a suggested retail of $99.
I was a little disappointed that this wasn't a tablet style device, but in retrospect it makes sense. Anyone who wants a tablet style Kobo ereader can get an Android tablet (or the iPad). The new Kobo Touch moves into a niche that Kobo hadn't occupied before.
The new ereader should show up for pre-order at Best Buy (Canada), Walmart (Canada), Indigo, and Borders (US) some time today. It's also going to show up with Kobo's Australian partners, but they don't have a date on that.