I didn't buy the light, but I did get the leather executive M-edge. It's a very soft pebbled leather, (mine is black). I insert the flap back into the slot because I fold the cover all the way behind when I read. I don't have any trouble with the flap, and I kind of slide my hand between the back and the folded back front cover while reading. I have not had any trouble folding my case all the way back. I guess it has gotten a bit easier, but I didn't notice any severe stiffness from day one.
As far as the little 'pillow' in the original cover, my m-edge folds down pretty snug when closed. I'm sure something could get between the cover and the screen, but in my case I do not believe the original cover and that little pillow offers any more protection from something working its way in. That being said, I did recently buy a used Kindle, so the original cover isn't new and the m-edge cover is. I'm not sure what kind of difference time will make. Still, I do know my new case fits nice and snug. I haven't had any trouble with anything coming unstitched or unglued. Again, mine is probably only a month old, if that, so time may make a difference. The case came with a foam piece inside the cover, I think you could use that for extra protection in your backpack if you felt it was needed.
Overall, I have to say the M-edge cover is very nice, and I think it really protects as well as dresses up the Kindle.
Good luck!