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Interesting... yeah, I typically don't turn it off since it shouldn't use more power on than off anyway.
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Actually, no. The system is still powered-up, albeit in an idle state. It still needs to be able to respond to key-clicks, and does couple other minor things 'under the hood'. Think of it like your computer being powered up, but using 0% processing power.
How much power? well, that's certainly a key question we don't have an answer for yet (AKA "If I'm not going to be reading for at least X hours, I should power down the Kobo).
I'd assume it would be a minimum of a few hours, but don't quote me on that.
EDIT: I believe a few of the earlier posts in this thread discuss this in more detail. Also keep in mind that the power-down and power-up process uses a certain amount of juice and needs to be factored into the equation to determine X.