Pics of the Kobo sleeve with my Kindle 3.
http://www.flickr.com/photos/92471558@N00/5439688382/
http://www.flickr.com/photos/92471558@N00/5439688504/
http://www.flickr.com/photos/92471558@N00/5439083089/
As you can see, it sticks out just the tiniest bit, but is quite satisfactory. I mostly use it just to transport in a backpack or something, I read the Kindle 'naked' so am not too concerned with an official case for it.