Not sure why so many people here think short-term sales are "indicative of the market", especially for an iDevice.
At this stage, Apple could of literally put out an iPad mini with a single-core A4, 256mb of ram, and 30% more weight and people would still be on this forum banging on about how great it is.
Apple has huge momentum, and this thing was going to sell out regardless.
The problem is, how does the mini fit in to the overall product eco-system? my opinion is that it was just Tim's little cash grab for the holiday season, with little thought of how this product fits into the range for the long term.
Lets see if the 3rd or 4th gen ipad mini will still be selling out in a few years time.
My feeling is that people will look back at the Mini in a few years and see it as one of many major missteps where Apple lost track of it's long term ambitions in favour of a quick buck for the holiday season.
As Dalton from the movie Roadhouse said..."Opinions vary."
So while you think the interest in the mini is short term and that it's popularity will decline, I beg to differ.
I am the proud owner of the first gen iPad. I didn't upgrade after the 2nd, 3rd or 4th gen...but I DID decide to upgrade to the mini. Why? I held one. It is the PERFECT size for me. Everything the iPad is, but in a smaller more portable form factor. I love it. Can't wait till my LTE version arrives in the mail.
I will use it even more than my first gen iPad, and I use that ALL the time.
About the lack of retina display? My question to you is, have you actually gone into an apple store and compared the mini and a retina iPad side by side? I would argue that because of the minis smaller screen....the difference to the naked eye is barely noticeable. Seriously.
Will the ipad mini eventually get a retina display? Most likely. Will I eventually upgrade when it does? Yes.
But the bottom line is that I LOVE the mini's size. It's PERFECT. Fits in my coat pocket or back jeans pocket. I don't need to hold it or carry it in a backpack like I do with my first gen iPad. Yet it's screen is sooooo much more enjoyable to surf the web on than an iPhone or iPod touch in my opinion.
In fact, I am going to transfer my unlimited AT&T data plan from my first gen iPad to my cellular iPad mini when it arrives and use it as a smartphone. I already use my first gen iPad to make free VoIP calls and texts...but the mini will be so much more convenient. It's like a big smartphone. Heck...it's not much bigger than some of the smartphones out there today.
So...I think you are very wrong predicting the iPad minis demise. I think it will become even more popular than the regular iPads in the future.