I doubt they would do an 8GB version. It would be pretty much DOA. You can really look at this two ways. Would you choose a $249 Nexus 7 over a $349 iPad mini because of it's lower price. Or would you choose a $349 iPad mini over a $249 Nexus 7 because of it's perceived better quality. I could see your average person split over this. Like others though, I think a $299 iPad mini would fly off the shelves. I know myself, I would buy 3 of them (one for myself and one each for my son and daughter for Christmas). At $399, I think Apple is going to have trouble selling the units. Too close to the regular iPad price IMO. I know at $399, I will probably buy a Nexus 7 and son and daughter will get money for Christmas.