Personally, I think the iPad case is ugly. My problem is with the exterior finish. It's like a suede finish and, as such, really shows blemishes, smudge marks, etc. I bought my iPad about a month ago and took a close look at the Apple case - owned by several friends - before deciding to go looking elsewhere.
After looking at dozens I settled on the Cyber Acoustics IC-1000BK. It's very nice looking, made of black leather with a smooth, matte exterior finish that does not show smudges and cleans easily (they also have the same case in red leather).
I like the way it holds the iPad very securely with soft plastic tabs at the four corners and then leaves the rest of the edges and all controls accessible. It has two small elastic straps at corners that can be used to keep the case securely closed - a feature I rarely use, but something you may want to employ during periods when the iPad is not being used. It also has an internal, wide elastic strap to put your hand through while holding the iPad in portrait mode - another feature I don't choose to use.
I found this for sale at a number of internet sites, but ended up buying directly from Cyber Acoustics. Since they ship for free, their price + shipping was as good as any.
In the interest of full disclosure: I have absolutely no personal or business connection with anyone at Cyber Acoustics.