Okay 1.1 does indeed allow for a much dimmer screen but only if you use the Reading Tools-->Brightness menu.

If you use the Settings-->Screen menu or the Quick Settings-->Brightness menu there is no change from pre-1.1 lowest setting.

What a kluge system of menus! The programmers should have used one menu to control brightness rather than three. I can understand adding a shortcut to the brightness control so you don't have to exit a book to change brightness, but using three separate menus each of which displays a unique popup window is a major user interface fiasco. Until @Care pointed out that the Reading Tools-->Brightness menu actually allows for a dimmer setting, I assumed all three menus allowed the same exact settings.