Well, I figured it out! I took my Reader with me to Best Buy for a second look now that I re-examined the photos. Sure enough, that case was there and I was able to get a black one without any kid-pictures on it. The trick is that the two sections are divided by a velcro attached divider, which can be folded almost flat, allowing the Reader to slide all the way in. And, yes, there is plenty of room for it including a cover.
It's a very very good solution that will be just fine, but in my quest for the perfect case I will probably still keep my eye out for alternatives because:
* Even when you fold the velcro flap over, it doesn't lie perfectly flat and leaves a small bulge. Because of that, I end up having to be careful to put the screen side away from the bulge. (Probably not necessary, but after all it IS my precious Reader!)
* The padding is great, but I think it's possible to get a little bit better protection. For example, there's no specific hard flap to go over the screen side.
* It is a nice looking case, but not "executive" nice. Just "ordinary" nice. Yes, I realize that doesn't make a lot of sense, but somehow I think people will still know what I mean!
I think 90% of buyers would find this case perfect for the Reader, so I would probably recommend it first to anyone looking for something based on the cases I know about so far. But the cases at The Pouch sound promising as an upscale case also, and I'm sure we'll discover other various options over time.
Much thanks to Ellen for discovering this and sharing it with us, photos and all!
P.S. Speaking of which, I am obviously reading way to fast these days due to limited time. I have just now realized that Ellen even specifically explained about the velcro divider, and I just missed it!