I have two of them and I like them better than the original candyshell that I have also. The one problem is that the flip part that allows you to dock the phone can sometimes start to flip off of the phone while it is in your pocket.
The scratching issue is a problem with this version of the candyshell as it has been with the original one.
This is part of the reason I am not a fan of the flip. The actual flip portion isn't tight enough.
I am the biggest fan of the standard Candyshell since it is a truly protective case that basically seals the iPhone inside of it. Zero dust or dirt gets in there once the phone is installed and the actaul phone is protected against everything but water.
The flip really destroys the integrity and the overall protection suffers. I pulled my phone out after 2 days of use of the flip that I was sent and there was dirt and dust all over the inside. If I didn't have a screen protector on the back the rear of my phone would have been scratched up.
While I like that it docks (part of the reason I requested it), due to the gap and the overall loose fitting of the bottom portion I can't recommend it if you are looking for a protective case. This saddens me since like I said, I am a huge Candyshell fanboy and really wanted a Candyshell that would allow me to dock my phone on my stereo. The one good thing is that drop protection didn't seem compromised at all as I did drop my phone onto the sidewalk (pure accident) and other a couple scratches, the case case and phone were still intact.
As for the standard Candyshell, even lacking the flip feature it is still my favorite overall case. The flaking (which goes away after a day of normal use) and the scratching (which is bad on the black version but not noticable on the white) is completely tolerable to me since the case is lightweight, keeps the sleek lines of the iPhone 4, and offers drop protection only bested by the Otterbox Defender.