Today brought exciting news of the Smart Cover attaches to the iPad with magnets and protects the screen.
Magnets on the side of the cover attach to the iPad, allowing users to open the case similar to a book. It folds back, acting as a stand, and is lined with soft microfiber that actually cleans the iPad's screen when it's closed. Opening the case wakes your iPad; closing it puts it to sleep. Both the polyurethane ($39) and leather ($69) versions of the Smart Cover come in five different colors, including a (Product)Red version.
Check out a video of the Smart Cover in action on Apple's site.