Exactly, everyone is always saying "to compete with the Fire" but lets face it. so far the shipments of the Fire haven't blown way the sales of the current 'big' iPad much less the sales (particularly if you adjust for returns) so why would Apple feel the need to make a smaller model when they are winning with the current one
For me, a 7" iPad would only really add one thing, give my wrist a break when I am reading in bed [coughs]