To be quite honest, I find the smart cover's soft inside surface with it's constant contact and rubbing of the screen GREATLY reduces the ongoing smudges and keeps my iPad 2 (and now iPad mini) much cleaner than folio type covers that don't keep a constant contact with the screen.
I have no problems with my iPad 2 Vaja Libretto, don't see why it would be less in in contact with the screen.
I love the leather of my Libretto, but it is already the third. The first didn't hold the iPad securely, the second has the leather go bubbly. The third now also lost some of the grip on the Pad so I had to attach it with a adhesive tape.
$200 for a smaller version is pretty steep and in relation to size it adds more bulk rendering the smaller form factor/weight a little useless.
Still love how my iPad feels wrapped in really fantastic leather, but if I'd buy a mini, I would look for a different solution.