I have a slightly different problem--but it's not too troubling to me. My light always goes off when I close the cover--I do notice when I'm using the non-Kindle brand smart cover, it sometimes takes a few seconds for the light to go off. But about every one out of five or six times when I turn my KPW2 the light doesn't come on. If I turn the KPW2 off and on with the switch, the light comes on--also if I adjust the brightness with the slider, it'll turn the light on. If I use the official Kindle cover, this happens once in a great while, but no where near as frequently.
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