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They made the square buttons special for the Kindle so that there would be flat buttons for when the covers is folder around. As I recall from the beta testing, they didn't think they were going to be able to do them in volume and worked that process out. I would guess that between (mostly) the flat buttons being more practical for the way the Kindle Cover is used and (partly) the investment of time and money spent working out the process, the flat buttons will be on the covers for the near future. I think it's sort of cook that we Kindlers have a button no one else has!
Betsy
Betsy