I started pulling off those leather flaps on mine too. I'm using a stitch remover. It looks like the leather trim underneath is stitched on separately, so it seems to work pretty well. Did you do the same thing or are you cutting the leather?
I bought some small eyelets from Micheal's, and they're too small... the diameter is small, but the depth is the real problem since the padding is thick, even near the stitches. I'm thinking 1/2" grommets might be nice, but Michael's didn't have anything bigger. I seem to recall getting huge ones for ropes and the like over at Home Depot. Know where to get something like that? Think I should try Home Depot again?