Well Scott,
Kinda late, but I'm going to take you advice.
I ordered an Otterbox defender for the iPad (should arrive tomorrow) and preordered one for our new iPad 2.
Last night my 2yr old dropped the new iPad 2 (got it on Monday) and the screen cracked. It's a light crack near the camera but the cracks stretch along the top 1/3. I had a smart cover on it, but that provides no protection.
I took it to Apple to try to get the screen replaced and they are going to replace the entire iPad for free. They had to order one and said it would take 3-5 days. I was pretty sad, but the Apple guys are great! I can't think of another store that would have done that for me.
Bad pic, but you get the idea:
