I just wanted to say that I'm quite excited about this new "iPad Mini."
Things that will keep me from buying it:
1) Performance not being great. I know that it's unlikely that Apple would ever release a product with "bad" performance, but I also am aware of the various (potential) positioning issues that Apple may want to avoid. With the (supposed) emphases on books, it's possible that the performance may not be played up as much as the new exciting form factor perfectly suited for reading. I for one would rather have perfect/great performance as apposed to a high resolution display, as the deal breaker for me with any device is performance/stuttering.
2) A gimped/hybrid iOS. I'm interested in the iPad application ecosystem. For instance Photosmith (
http://www.photosmithapp.com/). I would be worried or at least more likely to hold off if the "iPad Mini" was not able to run applications that ran on the iPad 10". To be fair, I don't know exactly how well all iPad 10" applications will scale down to the 7.85" display, and I'd probably tend to trust Apple was making the correct move if they required applications be specifically released for the new size (doubtful, I'm sure they aren't interested in fragmentation), but again if this did happen I would want to hold back and wait to see what happened. Same with the idea that the device might run iPhone/iPod Touch iOS. That would be a very big turn off for me.
Basically, I loved my iPad 2, bought a "new iPad" the day I could pre-order, but returned it soon after I got it on account of the size/weight (a small difference, but enough that it made using one handed wile on public transit (BART) uncomfortable), and decided to wait to see if a smaller iPad was released. I will pay any amount of money, up to $500 for an iPad Mini, but am guessing the base model will start somewhere between 299 and 400. I am fine with the iPad 2 resolution scaled down to the iPad Mini, assuming display quality is still great. I'd rather this then have a ridiculous resolution at the cost of performance or battery life. Given the "new iPad" performance/battery/etc, I'd rather Apple wait a generation before doing anything too crazy, and focus on great battery/performance/weight for now. I also feel that because of the smaller size, the pixel density even at iPad 2's resolution would be good/acceptable.