I have ordered 4 different leather cases over the last month for my Droid 1. Two of them were okay looking (generic black leather) and had a magnetic closure but I never had problems with the magnet. The problem was that they were very cheaply made and the "leather" was rubbing off and exposing the stuff underneath.
Then I got the third one and it looked nicer but I could only put it in the case one way or it would set off the Car or Home Dock mode.
Today I got my 4th case and it has no magnets and seems to be nice. it has a little elastic piece attached to a piece of leather that pulls down over the clasp. I know how much of a hassle it was for me to find a good case so if anyone else is looking for a good case (so far), then you can check out the one I got at Amazon by clicking here.