Can everyone just stop with this rumour? This has become one of the worst, overhyped Apple rumours I've ever seen. First, the sources for these rumours are crap: often times it's some Chinese publication putting it out. Second, the size will be a waste. Jobs is right, 7" tablets are tweeners. They generally suck for content. Smartphones are now so useful you really need a compelling reason to drop the handheld for a tablet. The iPad is just big enough to justify its existence in this respect. There's no way Apple is going to release it for this reason... In other words, it's a dead category. The only reason this stuff gets perpetuated is because of link whores and Apple's ever present disinformation machine. "Keep em' guessing; distract them; thwart their offensive efforts; cause confusion..."