It's just ignorant and arrogant.
In my work, I have to work with a lot of phones and tablets (both iPad and Android). Tablets are a niche device that will never replace laptops or workstations for most people. But they do do things that are very convenient and make them worth buying, so people will buy them in addition to their current devices.
No Android phone or tablet is as clean, slick, and smooth as an iPhone or iPad, but at half the cost or less, they are pretty darn good, and a much better VALUE.
Here's the problem with any 10" tablet: They are too big! Ever try to watch a 55" TV from 3 feet away? How much fun is that? I could place the 10" tablet 5 feet away, but that's longer than my arms are, so that's a pain.
Or...wait for it....I could do this: I could buy a 7" tablet! Then the screen size is just perfect, within 2 or 3 feet, for watching movies, etc., and, as a bonus, I can still hold it it my hands!
I'm not ever going to buy a 10" iPad, even a refurb at half the cost, because I already know that it is just too big for me. And an iPod Touch (or iPhone) is just too small for my old, tired eyes. But like Goldilocks, I am highly anticipating a 7" Apple device, whether it be an iPod Touch XL or an iPad Mini, because that will be just right.
I've never owned an Apple device before (just worked with them extensively), but at half the cost of an 10" iPad, I will gladly shell out money for one now, if it has the 7" form factor that works best for me.
Apple fanboys will buy it because the world does not spin for them if they don't own at least one of everything made buy Apple.
Parents will buy it for their kids so that they can get their 1st 10" iPad back from their grabby, insistent little hands.
People like me will buy it, because we know that a 7" tablet is just perfect, and we won't waste twice the money on something that won't work for us.
I am the market of new sales that Apple wants to move in an dominate.
I don't see a major cannibalization of Apple 10" iPad sales. I see Apple's domination of the 7" tablet market, and that comes at the expense of all the Android tablet makers....