There's a whole lotta negativity about this thing, but I for one hope it portends a mini-

TV fusion box. If it does, then the resultant system is EXACTLY what I'm looking for (well maybe not exactly, unless it shipped with Boxee), and I may actually be able to replace cable TV with it. It would pay for itself in a few months.
I'm imagining an Apple TV HomeTheater capable of 1080p playback, with a blue ray player, iTunes (and Boxee?!?!?) integration, and still able to check my mail, and RSS feed right on my TV.
No, I'm not hoping to Photoshop on it during commercial breaks, and I don't need it to be a gaming PC either (I've got other hardware for those tasks).
But I suppose if you're hoping that the new mini would be a headless gaming PC that is cheaper than a MacPro, then you would be disappointed by this.
Now if Apple simply releases another mini it its current form that happens to be really small - that would be stupid. I don't know of anyone looking at a mini that says "you know, I would buy that thing, but it just too darn big - if they could make it a little smaller, then it would fit on my desk...".
There is no affordance in simply making the mini smaller, but I think there would be good reason for Apple to want to merge the mini and AppleTV product lines together.