While I'd never want to own a 7" tablet, this may be good for the people who think the ipad is too big. If they price it at $250, then it's a worthy competitor to the nexus 7
same with me, making ipad smaller makes no sense, its already small and if people remember ipad was made to compete against crappy netbooks, its much capable device than netbook and screen real estate is just perfect.
i also vote against smaller ipad, instead apple shud focus on improving ipod touch which is their king device for media consumption