I think Nuckin already answer your question and you just gross over it. The big if in the qeustion of whether Ipad mini 2 will have retina is Sharp's ability to manufacture 7.9 inches IGZO glass at 2048x1536 resolution. It is true the Apple set up the problem because they want to protect the App developers. But there is a hardware solution and right now we don't know the schedule. So it is wrong to say that Ipad mini 2 will have retina. It is equally wrong to say that Ipad mini 2 definitely don't have retina. It is a race between Ipad mini launch schedule vs IGZO manufacture schedule and so far we don't know which one of the two is ahead.
It's equally 'wrong' to assume Apple will be utilizing IGZO technology in the next iteration of either iPad
Don't be hard on yourself. Because when Apple decides to release a rentina ipad mini it's going to destroy the ipad 9.7". I think the question now is will they still price it at $329. Releasing the ipad mini was good for the consumer but horrible for ipad 9.7" sales. Hence the reason why Apple would release the ipad 5 first and then the ipad mini. You now have an internal battle on your hands.
Apple doubled their iPad sales post mini release (almost...11 million to 19+ million year to year sales)...as has been acknowledged already, plenty of folks prefer the larger display just as there is a difference in laptop and desktop display sizes. The 'mini' isn't hurting the large iPad sales. They're augmenting total iPad sales. Big difference
Since there are no concrete facts about the ipad 5 be prepared to be disappointed.
Unless the weight gets to < .5 lb it will be too heavy.
Lol...seriously? The current 'large' iPad is no heavier than a typical hardback book. A 100 or 2 gram decrease would be substantial enough, not to mention the bezel shrink. It's cliché I know, but if you find the iPad 3/4 too heavy, it's time to put some of your income into a gym membership. As well, there are plenty of case manufacturers that supply excellent 'holders' for the iPad. I use a Marware CEO or Executive. Can't remember which but its got a small flap to hold the iPad with a single hand quite comfortably for extended periods of time. That said, with the leaks we've seen thus far, it does indeed look like some weight will be shaved off...though definitely not a half pound. That's not feasible IMO while maintaining battery life...as that battery is the largest contributor to 'weight'
Hard to see how it will have retina... When Apple made the mini in response to the N7 and others, it did so with old hardware so it could maintain a huge profit margin.
If Apple was to make a retina mini, that device would need a fairly substantial spec upgrade (as even the iPad 3/4 are not buttery smooth all the time). The cost of that spec upgrade + screen upgrade + premium positioning would put the retina mini at or near the price point of the 10" iPad.
Since consumers are already trained to think of 7/8" tablets as lower end than 10" ones... doesn't seem to make a lot of business sense. Doesn't seem likely that Apple would do what Google does and eat the profit margin... Google does that so it can catch up in market share, sales and awareness, but Apple doesn't need to.
I'm not following your reasoning. I don't think anyone considers one lesser than the other. Profit margins can still easily be maintained as the BOM price continues to drop---SOCs, RAM, and display as well as battery/energy, price points can easily be maintained and allow for the same margins profit-wise. I'm not so sure though that Apple and its board would be
against a slightly lower profit margin. IOW, if they're profiting 33.8% per 16GB build, in order to continue outselling the competition...sell even more units and open the doors for emerging markets (China) to make the buy---it makes brilliant business sense. They don't make as much per unit but they sell more units...the 'target' per share is still there.
As the prices fall...the contributor is the increase...furtherance of technology. And efficiency. And power. And memory. The list goes on. Just because they had to 'add' weight to the iPad 3 from the 2 it wasn't significant and it certainly was 'worth' the trade off considering how much better the device has become. The iPad 4 is absolutely 'buttery smooth' and it is all the time! Unless a developer has released a buggy application, it doesn't get any more 'buttery' than the performance Of the iPad 4. Even the current mini is 'buttery smooth'....at least mine is, again, ALL the time!
Nor do I believe your idea that smaller tablets are perceived as lesser quality to the public. A killer tablet is a killer tablet. An iPad mini with a HiDPI display certainly qualifies...again, IMO. Even though more spendy than the competition, the OS is smoother, the Eco system larger (optimized tablet apps), and the build quality better (subjective, I know...but typically metal is held in higher regard than plastic, see the androidcentral forums and the biggest 'knock' other than TouchWiz on the S4). Not to mention the little 'x' factors like post purchase support, timely updates and excellent resale value to name a few (a quick scan of completed listings on eBay show the original 16GB iPad still selling for $160-$220! Interestingly enough...the price is in parity with the 32GB models). They're going on the fifth gen here in a month or two!
While Google is indeed interested (in market share), I'm sure....it's not their goal to make money with their hardware. They're miners. Data miners. It's like the new gold, diamonds and emeralds. That's where Google makes and will continue to make their paper. Folks' info and the ability to guide 3rd party companies your direction!
I'm not sure consumers want retina iPad Minis. We'll find out in the next couple of months. If Apple does launch the next iPad Mini with retina then we know consumers do want it. If they don't upgrade the display, then we know it's not important to consumers and Apple believes the current technology is sufficient for an incredible tablet experience.
So I'm open minded about this.
You most certainly are 'open minded'. I think I know what you mean...but fair is fair. Consumers DO want 'retina' HiDPI displays on their minis

. They now want them on everything. It's funny. While I'm positively blown away by these resolution increases, I think the older generation of computer geeks---35/40 year olds +, that remember the old 80x24 green monochrome screens....and the massive upgrade it was to the ColorMonitor IIe that supported the Apple II 'Double Hi-Res standard...560x192

...tend to appreciate these updates a bit more and are
possibly a bit more patient while waiting on the 'next big thing'
I'll be the first to admit, I was extremely happy this year at CES, the big 'thing' was 4k and 3D has gone along by the wayside! I remember being satisfied when we were able to position the rabbit ears just perfect enough to actually 'see' Gilligan's Island through the static
Sorry. Did it again...
Tl;dr....people do
want HiDPI (I'm not find anymore of the word retina...many other companies have now far exceeded Apple's iPhone 4/5 resolutions) displays

....on everything. Are they willing to pay for it? Whole 'nuther ques-chen