I think Apple got enough problem with the new Ipad series not selling so they work harder to save the tablet market more than trying to draw kids to buy new Ipod touch.
If you feel 16GB is enough then it is obviously a better deal to get the 1st mini. However, i believe they would take it out of the store early 2015.
5 Ipad models are way too much.
Apple should have released a 5.5" iPod touch and marketed it as an ipad nano. Thing would have sold like hot cakes. Just sayin.