The "grommets" are actually the backs of two black snaps. The other side of the snap is on the very top of the holster flap. It loops over the belt, and snaps to that area right above the opening.
I'm guessing since there's an eyelet at the top of the opening there, there may quite possibly be a second, lower on the backside of the holster. There's no way for us to see, but I might add a second one, just for locis'd sake.
The "smooth side" that you see is there to cover the suede side of the leather.
Basically, the holster body is one large piece of leather, folded over on the front side. When you do this, you have the suede side showing where you see the "grommets" (snaps), they glued a second piece to make that area look a little cleaner.
I'll make a second, more final, prototype, this will have everything that should be on there. Before I glue another one together, I want to be able to dye the leather so the rubber cement won't seal any of the leather surface away from the dye. Maybe another 2 weeks or so. Again, just waiting for that jumpsuit sample, to have a physical color to compare it to. I'm going to have to do some dye mixing to get the right shade of purple.