Steve Jobs also said that there is ALWAYS a place for the desktop, and that he does not see the desktop being replaced soon at all. Likewise, there is a chance that Apple MAY drop the Mini. But under certain circumstances will they EVER decide to do this. Read on:
People are now in need of a media center unit. Why watch Youtube, DVD's, BluRay, or iTunes rentals on your computer, when you can watch them on your large HDTV now? Especially when apple can promote iTunes on your very own TV for more purchases. This is where the Apple TV comes in, but it hasn't been as successful as hoped. The Apple TV seems not enough (720p limitation, no OSX, no bluray, no DVD, tiny hard drive), but the Mac Mini seems a bit "overkill" in many ways. This is where merging the products may be a good idea.
Believe it or not, HP, Dell, and all other PC companies sell some sort of a miniaturized PC unit that all look great sitting in front of the TV. Most of these units have HDMI out, and can be added with BluRay drives from the factory. Some of these units even have Nvidia GPU's in them.
Now my point. The Mini will only be dropped, when the AppleTV grows some balls, enough balls to make consumers buy the AppleTV instead of the Dell unit which looks to be a nice unit btw:
http://www.dell.com/content/product...&~oid=us~en~29~desktop-studio-hybrid_anav_1~~
So possible scenarios:
Mac Mini updated. Apple TV stagnant.
Mac Mini and Apple TV combined into one product
Mac Mini dropped, Apple TV grows balls.
If Mini updated, we are bound to see a price drop.