If the price goes up and there is no 9.7" iPad at current pricing, iPad sales will take even more of a dive.
they're saying the iPad air 2 would remain there as the entry level model. i think this is an interesting development - i could see a pencil-capable mini pro next year, thus completing the lineup. they could easily continue to target schools and developing countries by selling current Air 2's and minis en masse at discount, they wouldn't even need to improve performance/hardware for years (how much 'better' does the below average-income consumer need at this point?).
if they really wanted to shake things up, apple could even -gasp - bring the pice down for everyone. let the pro lineup maintain the higher price points.