*edit* Come to think of it, there's no way Apple will do this. They will still carry a base iPad2 with a reduced price, just like they do with the iPhone 3GS and choke out the oxygen from competitors. They aren't going to open a new product line and muddy the buyer's options just for this.
That's exactly what I think they will do. When the iPad 3 comes out I would imagine the iPad 2 slots into the "budget" role (I use that term lightly). Perhaps an 8GB iPad 2 for $300 rather than a brand new form factor. If you had a Kindle for $200 in one hand or an 8GB iPad 2 for $100 more in the other hand, which would you choose?