Seems a bit absurd to me as another level up. The only possible reason for such a high storage would be to store music, photos, and video, but @ $1000 (after tax and w/o LTE) it's really for the person who has everything and who's ego dictates he must have the top-of-the-line of everything or he has nothing.
Now if Apple were to ditch the 16GB version and drop the 32 to entry, 64 middle, 128, top @ current price points then Apple is just adding value, and I'm OK with that scenario.
Personally, I bumped up to the 64 from the 32 when I bought the 3. I was near full w/ 32. But 64 is proving to be too roomy. I'll probably go back to 32 next time b/c, I felt a bit guilty paying $830 + tax for a tablet. Still do now that I don't even use most of the storage I paid extra for.
----------
I doubt it. "Final" is way off from here. While consumers may show a preference to the mini right now, professionals like lawyers and doctors, etc. like, need the extra screen space. Apple has been actively courting business so the 9.7 will be around for awhile. Plus iPad 9.7 sales are still strong, unlike when Apple effectively KO'd the touch wheel iPod, which had been declining in sales and then flattened, but not flatlined.