Cloth for me. I don't like the texture of leather, but that is a personal preference. Also, I assume it is uncomfortable to have leather seats during hot weather (I could be wrong). Welcome to PC.
I'd go with whatever the car has that fits you best and is the best price. If I was forced to choose I would go cloth then when it wears out or is too stained you can add very nice seat covers by Clazzio? or Wet Okole. They seem like they would fit better over cloth seats than leather. Less sliding around I would think.
We so frequently read lists of things 'wrong' with the Prius that have no basis in reality, that I am working on real reasons not to own one that real owners might regret. No car is perfect for everyone and a non-owner who is not frustrated is better than a Prius owner who hates his car.
