Kydex is most definitely a modern material and superior to leather and ballistic nylon although they still have their place.
Kydex is particularly well suited to cold weather conditions, but caution is advised in hot climates. At about 40 degrees Celcius the kydex loses its form, kind a like melting. So if you live in a desert or are found of leaving your sheaths lying in your vehicle in the sun, then it's probably not for you.
Under severe tropical conditions leather will show signs of wear much quicker and can start to rot, but when depends on how the leather was treated. Nylon is next best but will also wear with extended trips in the tropics. The coolest nylon sheath I have is for a SOG Government Agent and it has a kydex insert. Kydex is quite clearly the winner ain th etropical weather conditions as it is fairly impervious to the elements and will rrovide a much greater degree of protection than the other materials.
Kydex is fairly rigid and all designs use friction fit where the knife is held in the sheath by contact between the sheath and the knife. The lower part of the handle around the crossguard is always a favourite and usually contact is made on the upper thicker portion of the blade as well. This can cause light scratching, so make sure the kydex has been properly finished off so that there are no sharp edges inside the sheath and lubricate your knife slighly.
Kydex lend sitself to many varieties of carry modes like shoulder rigs, IWB, neck shetahs, crossdraw, etc. On the bigger factory sheaths you often get a number of slots along the side of the sheath which can be used to attach the sheath to web gear or backpacks. It just gives you a lot more options than conventional materials.
About a year ago I had some kydex sheaths made : a IWB for a Benchmade Nimravus, a shoulder rig for a Gerber Mk1 and a neck sheath for a Kershaw Ken Onion Echo. The Echo is a heavy knife for its size, but I didn't like the leather sheath that it came with. Since I've laid my hand son kydex I don't really want to use anything else
There's a guy on the site called Normark who is reported to do some good work.