I don't think the IPad Mini offers more, it just offers different things. Just because Apple priced themselves out of this market, doesn't mean they shouldn't be compared. Ask any hardcore PC guru and they compare the two all day long and are amazed that the Mini even sells, with the Nexus 7 as an alternative. (Just trying to play devils advocate)
I am deep into the Mac ecosystem, hence why I'm looking into the Mini. I have no problem paying extra, I'm just afraid Ill be disappointed with the display quality.
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Why wouldn't they? Apple is supposed to be known for moving the market forward not backwards. To answer your question, they would put the new display they are researching, that trumps even the retina display. (I think sharp is the manufacturer, don't recall atm)