It doesn't appeal to me, therefore it's a failure!
That is such a strange thought. There are 7 billion people in the world. A product doesn't have to appeal to all of them. Sell to just a tiny fraction of that population, and you've sold millions.
The defining feature of the current iPad is it's screen. This screen is so incredible that the vast majority of desktop monitors can't even match it, despite being twice as large. A lot of compromises were made in order to deliver this screen. The iPad became thicker, heavier, and slower. It takes much longer to charge and it cannot charge with the screen on. But if you want that glorious screen, iPad is the way to go.
The defining feature of the iPad Mini is it's thinness, weight, and screen size. Despite having a screen that's 35% larger than competitor's 7" tablets, it is thinner and lighter than those competitors. It also has its compromises, the resolution for example. I didn't pick up an iPad Mini despite anxiously waiting for one for a long, long time. But I'm not so ignorant as to think it won't appeal to others... LOTS of others. I don't particularly like Justin Bieber either, but plenty of other people do.
It reminds me a lot of the basic 6" Kindle. It wasn't color, couldn't run apps, and had no backlight. I thought it was a piece of crap based on those specs, I figured I'll just get a tablet and use the Kindle app. But then I used a Kindle. It was miraculously lightweight... and the battery just wouldn't die. It was more comfortable to hold than any paperback in any kind of reading position. None of this would have been true with a tablet, despite the tablet looking a lot better feature-wise. But that's the point, the e-ink is the trump card. The Kindle can't do anything else, but it does books WAY WAY better than anything else.
I definitely see the appeal of a premium 7" tablet that's super thin and light, with a screen 35% larger than the competition.