My iPad already has a nasty looking scratch on it, so it definitely needs a case. I've seen these cases (they're made by an awesome guy who's a friend of mine) and they're really beautifully made - the sort of hand-craftmanship you just don't see nowadays. I love my moleskine, and I love my iPad, so I think it's a great idea to combine the two.
Before reading this I predicted it would be named the iFad, but it seems like these good folks have outshone me in naming it the DODOcase. Doomed to extinction, indeed.
Wouldn't a case like that exacerbate the overheating issues the iPad (reportedly) has?
Link? DaringFireball and I think ArsTechnica and maybe Gizmodo reviews all say it doesn't even warm up from the cold 'first picked up' feeling, even during video playback.