Paul,
I think the KL1 is a much better solution than the Inova. Here's why:
Brightness-wise, a luxeon-star should be worth about 15-20 of those little 5mm LEDs. My Arc LS runs brighter on a single 123A than the Inova runs on two 123As. The KL1 is brighter still.
Second, the KL1 is regulated. LEDs run very efficiently on low power. As a battery runs down, unlike an incandescent, the LED will keep shining, though light output will drop proportionally. That's why LEDs give you many hours of very low light output after the first few minutes when the battery is strong. Surefire (and Arc, and other companies) put a regulation circuit in front of the LED that pulls power out of the battery even as the battery level drops. That means that as the battery gets weaker, the light output stays bright, until the battery just can't put out anymore. So you can take batteries that are partially depleted, put them in your Surefire with KL1, and get really bright light out. By contrast, do that with your Inova, and the depleted batteries will give you a correspondingly depleted light output. Yes, the Inova will run a long time on batteries, but I would rather run a shorter time at full brightness, than a long time on unacceptably low brightness.
Lastly, the KL1 has what I think of as a great utility beam. Fairly dispersed for close-up work, but still enough punch if you want to see something further away. The Inova is more floodlight-ish, great for closeup, not such great throw. Sometimes, I want to see something that's not just 5 feet away, and then I'm glad I have a luxeon star based light.
In summary, I feel regulated luxeon star lights like the Arc LS and Surefire KL1 are simply in another class than the Inova X5. The X5 has awesome styling and is a great light at a reasonable price, but it won't compete with the big dogs performance-wise. I use my Arc LS to burn off batteries from my Surefire M4 -- I change the 123As as soon as the M4's beam starts to yellow.
Note that I don't have a KL1, just an Arc LS, but I've seen beamshots, and they both use Luxeon stars and are regulated, so I know the two perform rougly alike.
Joe