If you want a mini, I suggest waiting for the update... The mini, like the first iPad, first retina mbp, and first mba, was introduced with better days in mind. I think the iPad 4 will hold up much better in the following years than the first gen mini.
I foresee the mini showing its age rather quickly. Mind you, I'm concerned not with sophisticated graphics, retina displays, and exotic apps. Rather I use my iPad 2 for casual Internet, news, YouTube, music, email, and word games. But even at that, the 2 is slowly beginning to show its age - namely with its limited ram. In fact, I think the mini's display is gorgeous. I'm disappointed with the full size iPad (3 & 4), which will only in this and the next iteration begin to overcome the bourdon that the retina display placed on the processing.
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Plus, if you can hold out, the next generation is sure to have better wifi connectivity.
If it were me, and I were forced to make a purchase tomorrow, I'd buy a used beater iPad 2 (or mini - something that you'll recoup you money when listing on cl), and wait for the upgrades later this year. Then, handle both sizes, and decide.