Yeah, a desktop running MBA specs, and you still have to spring for the peripherals yourself.
The original intent of the Mac mini was to serve as a cheap Mac for consumers wanting to have a taste of the apple ecosystem, and the primary vector of entry at that time was the Mac, so it made sense. Today, most consumers enter the apple ecosystem via the iPhone, and then get a Mac to complement that experience. In this context, a cheap, entry-level desktop Mac no longer makes sense from a strategic viewpoint, because most users aren't buying a Mac first, then an iPhone.