This is one of those perfect examples of "keep it simple, stupid" in action. The PropUp is an iPad stand made of soft foam rubber that gently cradles your tablet as it supports it on any flat surface — or even your lap. (Perfect for couch or bed!) The PropUp not only grips your iPad firmly enough that you can hold it upside down without fear of it falling out, it also provides enough "depth" that you can place your iPad face-down with no risk of scratching the screen. There's also an access hole to plug in your headset.
While originally designed for the larger iPad 1G, you can still use it on your iPad 2, especially with the Smart Cover installed. PropUp promises a universal version soon; they've already begun offering a wider palette of colors than the original basic black. At $29.99, it's a super deal.
(If you'd like to help PropUp develop models for future devices, you can support it via donations to the Kickstarter Project.)
Check out our video demonstration of the PropUp: