I had serious doubts before ordering this case for my "new iPad" a.k.a. iPad 3 a.k.a. iPad HD, as I absolutely hate the way silicon feels at touch and was told that TPU was pretty much a fancy kind of silicon ; I nevertheless ordered it as it was not a huge risk given the price tag.
I do not regret this at all ! The material does not feel like silicon at all, but rather like a flexible kind of plastic ; it does feel very good at touch, and looks good too. And for those of you who tend to have oily hands like I do, it does not retain oily marks/smudges like 100%-plastic cases do.
The fit is very snuggly while not being so tight as to damage the iPad's frame ; can't fault it on this point.
Regarding the compatibility with Apple's official Smart Cover ; it is indeed fully compatible with it. There is one downside though; the Smart Cover does not completely touch the screen when the back cover is on, which can result in a. the Smart Cover not "cleaning" the iPad screen as well and b. the Smart Cover not sticking to the iPad screen all that well when the device is upside down. If you fully rely on the Smart Cover for those functions, beware.
Overall a great product for a great price tag ; very satisfied. Would recommend.