I'm also a sucker for a nice cover. For my simple touch, I'm on my third one. I was frustrated at not being able to find a case and finally settled for an m-edge. It did the job but I hated the color (it was the only color available at the time) and hated the hard spine (I want a flexible spine so it will fold back flat) and within a month, it started to delaminate.
meanwhile ...
I paid a local artisan (ha! retired ex-cop turned leather worker who made gun holsters) to make one to my design. He totally screwed it up. The leather work is very nice but it is too small, too stiff, and not conducive to holding comfortably. That was an expensive mistake.
Finally ...
I found one at B&N that does the job. Discounted from $30 to $20.
beaker of alien blood in water not included!
It does use the clips to hold the nook. While they appear suspiciously under-engineered, they seem do the job nicely. It does 'flop' about a quarter of an inch if held upside-down, but it has not been a problem. The clasp is neodymium magnetic, which I like. The outer fabric (a synthetic) has the same chalkboard feel that the nook has; a bit disconcerting but I've become used to it.
If I can find another (more competent) artisan, I may try my luck again and have one handmade.