I am currently using that cover with my Kindle 3. It is adequate but I wouldn't choose it again. Only reason I have it is because I had to return my Amazon leather cover, and didn't feel like waiting for another online order (I was getting ready to go on vacation) so I just bought one locally and selection was sparse. It uses a mounting design where the Kindle is secured atop a plastic base. This raises the Kindle up over the cover's surface, adding considerable thickness to the cover when closed (also the cover doesn't fully close flush). This mounting system gives the cover a bit of a cheap, toy-like feel imo, though it does away with visible straps typical of some covers. It has a fold-out thing that allows the cover to double as a propped-up stand, which I don't personally have use for.
Build quality of the cover is fairly solid, and it has a pretty nice interior lining that's soft and free of the silly pockets and card holders so prevalent in Kindle covers. The faux-leather is typical faux-leather, which to me feels cheap and plasticky. I would rate the cover as "good enough."
I'll probably wind up buying an Oberon or Octovo at some point, or something similarly fancy.