Enter STM Bags. I am now using their 'skinny' form fitted case for the iPad mini and it works great. The mini snaps in securely, and all ports are accessible, including the camera. The cover folds over and the magnets activate the wake/sleep function as expected. You can also fold back the cover and lock it in to two different positions, ideal for typing or viewing movies. I would have preferred it if the cover could be folded around fully flat, like the Apple SmartCover, but it doesn't.
The material is great. The protective shell is a hard plastic accented with fabric that feels like a cross between ballistic nylon and carbon fiber. The skinny is available in black, light blue, punk, and red.
And it remains slim, as an iPad mini case should. Their slogan for the skinny is appropriate: "Get the skinny on your iPad mini!"