Relax and 'Don't Panic'
Check out this prototype iPad case, from aptly named Don't Panic, made of brightly colored felt with elements of leather. It seems soft at first but it definitely holds the shape that you fold it into because of the stiff leather panels. The best part about this case is that it can be comfortably positioned to suit whatever way you're using it (lying on the couch or sitting at the kitchen table).
Right now, Don't Panic is looking for funding through Kickstarter and if you like the case and want to help out a company that plans to manufacture the product entirely in the USA, consider supporting them; they're only a few thousand away from their goal!