I bought one for my iPad 2 the other day at an Apple Store, and my out-of-the-box impressions were not positive either. It would be nice if the cover were absolutely flush with the iPad. But after living with it for a day or so, in different positions, applications and places, I'm beginning to get quite used to it. It's pretty sturdy for a thin case, provides full coverage while still flying the Apple flag, and my hands have adjusted well to the feel of it in several different use-positions. I had the Smart Cover before, and it's nice now to not have the cover detach unexpectedly from the iPad. So I guess you can count me as pretty satisfied with my purchase.
I actually ended up talking with AppleCare about the product and its warranty. They didn't know off-hand, so I had to wait 20 minutes so they could find it. The Smart Case has a limited 1 year warranty on any defects and craftsmanship. So, I ended up returning my original case and got a new one. So far I enjoy it much more as it feels tighter and the iPad is less prone to move in the Smart Case. Still have the gripe about opening it though. Only flaw.
Link to Apple Accessory Warranty page (in case an Apple Genius gives you a hard time in the store about exchanging).