Not useful for me, but if it occupies a pricing sweet spot, then it should pick up a good few buyers, especially the 'Dad I want an Ipad' legion of kids.
Yeah i thought of kids xmas pressie when reading about this.
At the moment I have twin 3yr old boys who can't get enough from my new iPad, always wantig a go.. would love to splash out and buy them one each...but I think giving really young kids an expensive gift like an iPad is really excessive... but a dinky mini iPad at a lower price might not be that bad... Then again, if Apple do a price slash of the iPod touch, that'll probably be even better.