I've always thought this too. An iPad with an integrated case would be able to fill the entire flat back area with a battery, and just have rubber on the edges where impact protection is needed. The existing design is really optimized around having an impressive experience in the store when holding an uncased product, before you inevitably cover it.
Why would you want an integrated case? The soft impact absorbing materials degrade much faster than the aluminum. Look at the average ipad users case and it's falling to pieces, you don't want that permanently fixed to the device.
There's also many users who don't need a case. A lot of ipads are POS systems that are fixed to the bench so they don't need a case either.