I would. Others have said it before, and I'll repeat it. The markets for iPad and iPod touch are very different. I have an iPod touch that goes with me everywhere I go in my pocket. There's no way I am carrying around an iPad, not even a mini, it's just to big to be a pocket device. I would never go jogging with an iPad to listen to music and I would never carry an iPad to take casual photos. But for browsing the Web or watching a movie, the iPad is a much better choice. Apple knows this and they don't want you to choose an iPod touch or an iPad, they want you to buy both. Heck, they want you to buy one of each for each of your family members. And people will, because they are used for different things.Firstly, the pricing. Customers new to Apple are going to have a hard time choosing which product to buy. Who would buy a $399 iPod Touch over an iPad 2 at the same price? Better yet, who would buy the same iPod Touch over this new 'iPad Mini'?..
The iPad mini sales might chip into the full sized iPad sales a bit, but I suspect that the iPad mini will be more like a gateway drug for many and they'll end up getting a full sized iPad in addition to the iPad mini. It's all about the ecosystem. No one wants to buy all their apps all over for each of their devices. Once Apple gets you in the door, whether its with an iPad mini or an iPod touch, they've got a long-term customer.