I've only been using it for a day, and I have to say I'm not thrilled with it. It fits nicely as a screen cover, it's nice it wakes the iPad, but I agree: holding the iPad with the cover on is a pain - sometimes literally.
When it's folded back, the bottom edges of the hinge are not rounded or beveled. I hold the iPad by the bottom corners, especially when typing with thumbs. This puts that hinge edge into the heel of my hand and it just feels rough/sharp. It's not too bad if I hold it higher, but then it shifts back and forth.
Another item is the end hinge pieces can contact the side edge of the iPad when the cover it's folded against the back. I also looked at the clearance when using the cover as a stand. I can't remember which position, but one put those hinge pieces in the same place - against the iPad's case. I can imagine, after use, there will be a mar at that spot.
The only thing keeping me from returning it immediately is I typically prop the iPad up against a pillow on my lap, so I'm not holding the iPad at all. When I get up, I can just swing the cover closed and set the iPad down. I'd say I use it like that most of the time, so when I'm holding it in my hand, I can just remove the cover.
I agree on the price. That must be some kind of special cow for this small piece of leather adding $30 to the price. Maybe it's handstiched...
I used my iPad 1 naked most of the time, and used the Apple case as a folder to drop the iPad into when I get up from the couch. The only time I'd put it in the case is when I took it out of the house. So, I suppose I'll just pop the "Smart" cover on and off, depending what I'm doing.