I have the classic USMC KA-BAR and I love it. I traded my BK7 in fact. The sheath was awful and as big of a Becker fan I am, I just didn't need it. The KA-BAR is light, quick in the hand, holds a great edge and is plenty stout. It's not an overbuild ESEE in that it isn't designed for nimrods who want to beat the hell out of a knife just because they can. It does have limits. This was a knife that was designed to be mass produced for men involved in some pretty serious business. It is a combat knife first, but will serve very will in any other capacity.
If you are like me, aesthetics are important. You cannot beat the classic, pure American look and feel of a leather handled KA-BAR.
And yes, I would go with the leather handle. I find it to be much more comfortable and easy on the hand than kraton.
Also, I bought mine with the kydex sheath but since went back and got the leather sheath. I feel the leather has wonderful retention and a great feel to it.