If I take my ereader out of my house I will have it in a case. If I am at home sitting on my couch or bed, where the ereader would fall on a soft surface, I may read without the cover depending on the ereader (I find my Tolino more comfortable to hold without the cover, but prefer my Kobo with the cover on).
The only real damage I've had to any of my ereaders was when I was reading on my Sony T1 during a break at work. Something fell off the hutch over my desk and landed on the screen, creating a 1/8" divot. Having the reader in a case would not have prevented this. The reader was still usable.
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