Nice sheath. For me it depends on the knife and method of carry. Here in the desert, kydex works well for blades that are worn close to the body. Sweat is no problem for Kydex and I will be doing alot of that for the next 6 months. I tend to conceal my sub 5 inch blades in a high ride style kydex rig. For this style of carry, which I use most often, I prefer Kydex.
For more casual carry (camping, hiking etc), and when it's not 110 degrees like it was yesterday, I prefer leather. Leather looks better to me and generally there is more cfratsmanship involved in the build process, which is something I appreciate.
In certain environments I can see how Kydex would look more scarry to people. If it's black, it's tactical. I like tan and OD kydex myself. Around here, I don't have to worry about that too much with concealed carry. I tend not to open carry "in town" although it's legal and I do so from time to time.