Returned my magnetic ripoff and went with an iPad 1 case.
It's loose and the cutouts aren't perfect. So far, I fixed the looseness by putting two foam pieces behind it (with speaker cutouts). Works great and I can hear audio just fine without poking holes in the case.
I'm good with this until there is a Apple iPad 1 case clone that's not junk.
Edit: In the second pic on the top right, all I did was reach under the iPad and tuck the padding underneath neatly. No bulk or anything. The back of the iPad case is soft and, well, great. The fit is tight.
The only issues are the cutouts which can easily be fixed with scissors or a razor. I can easily deal with that. Highly recommended if you like the iPad 1 case (which is perfect, IMO). Now I'm well-protected and don't have a flappy magnet cover opening in my bag every two seconds!