I use the touch cover 2, so most of the time when not in use I just flip it around behind. Adds some texture to stop it slipping off my legs
Have been meaning to buy a bag for all bits and bobs, but haven't got around to it yet:
Tablet Travel Express - Nexus Tablet Case - SFBags - WaterField Designs
I always have the cover attached. Personally I think that's the point of the cover.