The ipad mini's price - ALSO - Is to be commended. It's probably just about right for those who WOULD have wanted a big Ipad before, but would have opted for a $200-something Android tablet. Now those folks can say 'hey, this is only $330 - sweet!" It competes on another level than Android, and has a different character in it's design, that alone warrants the price. I see it as being a cheaper Ipad - Not necessarily a competitor to the other seven inch tablets. If we take a step back, we can understand the genius of this maneuver in pricing.
Albeit with two ipads already in my home, I personally do not need a mini- YET - But when the kids start wishing for tablets, I think I would rather go with the ipad mini than a nexus 7, or Kindle Fire.