I like having a case for a couple of reasons, most of all because it does offer some protection to it (although I have dropped it on a number of occasions both, and even launched it across the room once, in the case and bare, with no ill effect).
However, I did find a way to get the KT to fit in case I have; it was originally designed for the Kindle 3 so the original kobo was just a tad smal for it to begin with. I ended up using the tie cable that came with the USB cord, and strung it between the two elastics that hold the kobo in at the top, and tightened it a bit. Now the KT is now snug and secure.
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