Personally I liked the smell of the new Kindle 2 cover but then I've always been a Leather Man.
I find the new hinge system to be a major improvement over the Kindle 1 system. THe cover folds back nicely into a pre-broken leather hinge that lets the unit lie on top of the front cover effortlessly from first usage.
The inner lining gives my fingers the right cush to grab into it to hold on firmly when folded under.
I do advise a modicum of attention when taking the Kindle 2 in and out of the hinge though. Sloppy alignment could lead to accidents that could indeed scratch the Kindle. I might have silicone dipped the hinge grippers if I'd been the designer.
What I want is a Cole Han cover with the hinge...