At ShowStoppers (some lame tech media event) last night, probably the only company that was showing anything Gizmodo-cool was iFrogz—its Tadpole iPod case for children was showed off for the first time and it sure does look interesting. Since it's for little kids (the target audience seems to be children 5-years-old and under), the handles should work great. You do have to wonder, though, what kind of society wants its children glued to an iPod's screen for long periods of time. It's got the same rubber feel to it like other iFrogz cases and should be out this November for around $25.
iFrogz, one of the only companies whose names ends in a "z" where it should be an "s" and whose products don't stink.
Product Page [iFrogz]