If you look at the picture that MacRumors provided. Just by scaling down the same picture by like 20% you are not getting a smaller iPad! Stop all the rumors. I don't know how many time this rumor floats and everyone has same comments. IT WILL NEVER HAPPEN! It just doesn't make sense. Apple is not in business of building remote controls (Wozniak did that when he left Apple year ago) and they are not in OEM business to provide car manufacturers in-dash display.
Let's leave those small screen form factor for Android tablets! Give it a rest - There is and there will be no Mini iPad!
IT WILL HAPPEN! How large is an iPad for kids? It is as if you carry around a device that's twice as large and twice as heavy! Would you like that? No!
The 8 inch iPad is for kids, and it is cheaper to produce and affordable for the education market. Apple should have introduced it at their last textbook keynote, but they didn't want to destroy the demand for iPad 3.
First the iPad 3 will come, then (June?) the iPad mini will come!!!