The iPod Touch pricing definitely put a damper on the theory that Apple will be competing on price. But there is some good news here... 
IF it even exists, the Mini as a premium priced product ($399?) will have premium specs. At this price there's no cheating out so well get a modern processor, camera and a retina screen so no compromises and the Mini will be geared primarily towards people who care more about size than price. (Yes, there are some people like that out there that don't like the 9.7" screen)
Everyone wins except the kids (who'll be recieving Nexus 7s or Kindle Fires because there's no chance I'd buy them a $399 iPad Mini.)
IF it even exists, the Mini as a premium priced product ($399?) will have premium specs. At this price there's no cheating out so well get a modern processor, camera and a retina screen so no compromises and the Mini will be geared primarily towards people who care more about size than price. (Yes, there are some people like that out there that don't like the 9.7" screen)
Everyone wins except the kids (who'll be recieving Nexus 7s or Kindle Fires because there's no chance I'd buy them a $399 iPad Mini.)