OK - so I've used my PW a bit more now. Forgetting about the front light, I have to say I like the device better than my Kindle Keyboard. Some of the features I just really like.
Back to the front light, if I'm outside in the sun, I turn the light to the lowest setting because despite what is recommended there is absolutely no difference between a full setting and low setting that I can detect - so why waste the battery.
However, inside is a different story. When it is quite light inside, or I'm reading next to a window during the day, I find lighting the screen halfway improves the look of the screen considerably over my previous Kindle and if I light it just right it's not "glowy" at all, just crisp text on a much lighter grey background.
When the light is more dim inside, with the previous Kindle, I would turn on the main lights and sometimes a strategically placed lamp to make sure my view was always clear and comfortable. Not required with the PW. In fact, I can leave all the lights off and just slowly dim my screen as it gets darker inside. This is nice because it means I really don't have to move to adjust my reading conditions.
At night in bed, I would have a bedside lamp on and that would be OK on my previous Kindle, but I would often get complaints. On camping trips I would use a clip on light which I'm not overly fond of. I find lights that you attach really annoying and awkward in general. Additionally (with lights off), I would often read on my Galaxy Note mobile with black background and white text on a reasonably dim setting. With the PW, the only thing that's bothered me a little is that the "glowiness" of the screen bothers me a little. I turn it right down to the recommended level and I still find it a bit of a strange read. At this stage I wouldn't say it's bad - but something I need to get used to.
I believe there are some theories about the quality of your sleep if you're looking at a computer screen just prior to sleep. I'm not sure if this is specifically an LCD/backlit issue or would apply to any screen that glows brightly enough.
OK - anything else? Well yeah, I guess there is something. Sometimes I notice slightly less crisp, lighter text in patches on the screen. It may be my eyes that are at fault here rather than the screen.
In summary, I don't think at this stage I would want to go back to a non-front lit eReader. The benefits so far are outweighing any possible disadvantages. If things change I'll report back, but hopefully there will be no need.