But it's the same as an iPad2, not an iPad (Retina). I think you are right that people will buy this because it's cheaper and smaller, but those are the people

But it's the same as an iPad2, not an iPad (Retina). I think you are right that people will buy this because it's cheaper and smaller, but those are the people that would have purchased an iPad2 because they "don't want a tablet, they want an iPad, and they don't care which one it is." In my mind the Mini is a replacement/upgrade on the current iPad2 (at a similar price point) and the full-blown Retina iPad will continue as the flagship of sorts. The smaller size just means the Mini fits a niche that the previous offerings didn't.