i have a soft neoprene case that goes around the camera. When I won't be using it for a while, the camera goes in the case and into the backpack. The regular camera is just too bulky to carry around. Most of the time the camera is out and around my neck anyway.
I have *a* bag, but not my camera bag - just the regular Disney backpack.
I do have a neoprene sleeve like PP. OR when it's in the bag for a long time I wrap it in a scarf or jacket or something else soft that might be in the bag. I usually stash it for rides and stuff and since it's just me and a kid I need it to be easy to get in and out.