Welcome to MobileRead, RobertGloverJr!
Your situation is hereby duly noted.
For what it's worth, I mostly use my PRS500 with the cover folded all the way back too. I find it handier that way for most of my reading situations.
Clearly, your usage requirements mean that this particular holder/cover is probably not what you need. However, it seems to be precisely what others need. So now that this need seems to be well in hand (so to speak), it's time to look into covers that will fit other needs, such as your own.
Has anyone contacted MEdge yet to see if they're working on a cover for the Kindle? they've done them for everyone else, I expect that Kindle would be on their list, and their covers are well suited for one-handed use.