What's the point of a smaller iPad? You would truly be better off with th regular iPad size. It seems a little unnecessary to decrease the size of one of your products to compete with another company...
Or, some people want an iPad? But want a smaller one? And Apple knows they can make money off a small tablet?
Rember kids, Apple is just a business. They don't care about you, or your opinions, or what you want them to do. They care about money, and thats all.
If you say you won't buy a smaller iPad, they don't care. 100 other people will take your place and buy one.