I initially purchased the smart cover, but I found it very limited and over priced.
You have choice of 2 positions. The more upright position was too steep to view the iPad's screen when surfing and it kept falling over when I was using the iPad on my lap.
Admittedly, the iPad keeps its good looks, but at the price of not having any sort of decent amount of viewing angles, and no protection to the back. I think if Apple really put some thought into it, they could come up with a stylish and practical case that protected the front and back and provided a decent amount of viewing angles.
I purchased the below case, and I find it superb. It provides me with loads of viewing angles, I can place the iPad on my lap, and view the screen whilst surfing, type on the iPad and it doesn't fall over, it protects the front and back of the iPad.
Apple iPad 3 Advanced Pro® Multi-Function Case Luxury: Amazon.co.uk: Electronics