A member of the MobileRead forum has posted some information on the rumoured next generation Sony Reader. The poster quoted a source on the Sony Insider forum who claimed to have discovered two service manuals for the supposed new Readers. According to this source the models are called the PRS-300 and the PRS-600:

The Sony Reader PRS300
PRS-300: 5″ screen, no touch screen, no audio output, no card slots, ~440MB user partition, 220g.

The Sony Reader PRS-600
PRS-600: 6″ screen, touch screen, audio output, SD/MS slots, ~380MB user partition, 286g.
As with the PRS-505, it is rumoured that these models do not have a wireless connection or built in light. Personally I do not find that too much of a problem, especially in light of the Kindle/Orwell debacle. As the Sony Reader is the market leader in the UK at the moment, wireless probably isn’t a major concern. Should the Kindle make it to Europe however, it could be a very different story.
Update
Engadget has more details on these models:
If said sheets are to be believed, the 5-inch (800 x 600 resolution) Sony PRS300-RC Reader Pocket Edition will ship with 512MB of onboard memory, PC and Mac support, a battery good for 7,500 page turns and USB 2.0 connectivity. The 6-inch (800 x 600 resolution) PRS600-SC Reader Touch Edition checks in at 0.4-inches thin and boasts a virtual keyboard, doodle capability, 512MB of storage, a built-in English e-dictionary, PC and Mac support and the same battery as on the smaller sibling.
My younger brother has a Sony Touch screen reader. He uses it to take notes in meetings and read books whilst traveling. He loves it.
(found you on Twitter)