Quality leather is plush without padding. There are many grades of leather and the leather that LG uses on the G4 (at least on my brown leather G4) is some of the thinnest leather you can use. I imagine it is leather since they can't advertise "real leather" without actually proving that it's real leather but it is leather that has been dyed and processed to death.
Just because something says "real leather" doesn't mean it's only "real leather". It can have all kinds of other chemicals mixed into it. Considering how thin and tight it is, if it were only real leather, it would not look very good for too long and it would probably rip and scratch too easily.
If you have owned any top grain leather products (as opposed to the low grade, "Genuine leather" products), you know right off the bat that this leather is not of the highest quality. I don't mind and frankly, whatever they mixed into the leather is making it hold up pretty well so I'm thinking about getting a black back to see what the difference is other than the grain pattern imprinted on the black leather.
BTW......Anything can be made to smell like leather.