I agree. The fact that the new smart cover doesn't properly fit the new iPad, and instead overhangs the side is a real bummer. The fact that Apple designed it to pair with the back case at another 60 bucks really stinks.
For me, it's not about the extra money—although that is annoying—but the WHOLE POINT of the iPad vs. just using a Macbook Air is it's super thin, easy form factor. When the cases start making is as thick as an Air, Apple is destroying part of the value prop for people like me.
I agree about the size. Although I'll probably buy the case now to make the cover work....
I also feel no need to add a keyboard to my iPad. If I have work to do that needs a keyboard I'll sit down at my MacBook. Now I'll reconsider when the iPad can run osx\ios at the same time.