I do most of my reading at night, and since the Kindle Touch is not back lit, a lighted cover is a must. Having owned Amazon's
Kindle Lighted Leather Cover, Black (Fits Kindle Keyboard) with my previous Kindle, I knew exactly what I wanted in a cover and while the new cover has some advantages, Amazon really missed the boat as far as design:
FORM FACTOR - The back of the case is made of molded plastic that fits perfectly to the Kindle Touch. You slide it in and it clips in place. Terminals on the back of the Touch connect to terminals on the case to provide a connection for the light (the light draws power from the Touch itself). The Kindle Keyboard cover had a mildly annoying elastic strap to keep the cover closed. The Touch cover omits the strap completely, and there is nothing holding the cover closed but gravity. This isn't too much of an issue for me because I can't really see too many instances where the cover will fly open, I just find it strange the developers didn't address this. The Kindle Touch actually has a thin piece of metal underneath 90% of the bezel. If you hold a magnet up to it it will attract. It would not have been difficult at all for Amazon to insert a small magnet into the cover so it at least draws it closed and prevents it from flying open. But again, I can't really see myself having an issue with the cover coming open a lot. The Kindle Keyboard cover did have an issue with people accidentally opening it the wrong way, breaking the terminals off in the hinge. I actually ordered a clip for my cover to prevent that from happening. This isn't an issue with the current design. My biggest gripe about the form factor is that it is too snug of a fit. It bis very difficult to remove the Kindle Touch from the cover once it is in. There is no depression for you to put your finger under it and separate the two. You have to hold the cover with two hands and pry/peel it off the device. I have found the easiest way is to support it on my knee or a desk and put pressure against it until it comes off. If you are someone who frequently takes the cover off your Kindle, I promise you that this will annoy you to no end. However, since the cover is so much more streamlined, I will likely leave it on all the time. With the Kindle Keyboard cover, I liked to remove it during the day so I could feel the lightweight of the Kindle in my hands. This cover is small enough that I think I can get the same effect with it on.
LIGHT - The light sits flush inside the top of the case. Terminals on the back of the Touch connect to terminals on the case to provide a connection for the light (the light draws power from the Touch itself). I do not know what the actually draw on the battery is, but it is fairly negligible compared to normal Kindle use. Even using the light all the time, you should still get at least a month of regular use. The light slides out easily when ready for use. It does feel really flimsy though and I would be careful with it while open, as it seems like it could snap right off if you accidentally sit on it or something. There is only one LED bulb as opposed to the previous cover's three. It is fairly bright but it will not provide even light cover across the entire Kindle. The bottom 20% is a bit dark, but I find it is completely acceptable to read with and have no complaints there. I would say it is a slight improvement over the Kindle Keyboard light.
DURABILITY - This is definitely a cheaper case than the previous one. Although it is made of leather, there isn't much of it. The leather on the front of the case is a very thin piece, connected to a thin piece of felt which sits against the Kindle display when closed. It is 1mm thick compared to 4mm for the previous case. Although some may prefer this, since ideally, you don't want a bulky cover, it seems to provide much less in the way of protection for the front of the cover. With the Kindle Keyboard cover, I =am reasonably confident that I could briefly sit on the Kindle with no damage to the unit. I would never bet on that with this cover. It provides protection to the Kindle from scratching only. Unfortunately, there is nothing to protect the cover from scratching. The Kindle Keyboard cover was textured, so if you did scratch the cover, it would be difficult to show up. This cover is completely smooth. I ran my keys across it and it instantly scratched. I don't think it will likely draw too many scratches and I mention this mainly to comment on durability, but people may want to know this if they plan to keep it in their purse or a desk.
Unfortunately, likely due to Amazon contracts with developers, it is unlikely you will see a better lighted alternative. If you do not need the light, I suggest getting a better cover. If you do need the light, this is currently the best thing you're going to get that doesn't involve having to use a bulky, clip-on attachment. It is not a terrible cover, but it is a disappointment given Amazon's previous version and what they could have done with it.
PROS: Lightweight, very small, better light, no elastic band.
CONS: Not as much protection, feels flimsy and a bit cheap, no way to keep cover shut.
Update: January 2012 - After a few months of using this cover, I have got it figured out enough that I can fairly easily get the Kindle out of the cover without having to pry it out with a screwdriver. I do still think it has several noticeable design flaws that Amazon could have changed, but one thing I do appreciate is how slim it is. I can easily put my Kindle in my pocket, which is something I couldn't do with my Kindle Keyboard in its cover. If I could, I would change my rating to 3.5 stars.