Waterfield Designs IPad Suede Jacket
Waterfield Designs' iPad Suede Jacket is a very snug, black-suede sleeve with suede loops on the bottom and side to help you remove your iPad. The Jacket costs $19--$25 if you add a small external pocket when ordering--and serves to protect your iPad from smudges and scratches but, thanks to a lack of any padding or rigid inserts, not from drops and bumps. Once you remove your iPad from the Jacket you can use the sleeve as a polishing cloth.
The Suede Jacket is a nice enough sleeve, but if you're handy with a sewing machine, you could probably make your own with the right materials.