My wife and I threw together this felt iPad sleeve to protect the new toy from scratches and our crazy cats. The felt is far too thin for this to be a long term solution, but it works just fine for now. Ultimately I would like to make a similar case out of 3mm 100% wool felt, but that stuff is a bit pricey at $70 + per yard.
For $70 I would rather buy a bunch of selvedge denim for more jeans! When this case finally dies, I might have to make a lined, selvedge denim case for the iPad. I still have some denim left over from the jeans I made, which would be perfect for this type of project.