Maybe not, but a $300 iPad would be enough to completely screw with Windows 8 device manufacturers just before they start releasing those tablets, as most seem to start at double that price.
with a 5th generation iPod Touch costing 299 I do not see why they would price a "mini" iPad at the same price. Perhaps as a 16gb model as the 32gb Touch is 299.
Yes, but is a 7" tablet a absolutely awful substitute for a iPod touch? It probably is since it wouldn't be as portable(who is going to strap a tablet to their arm to go running), but in the history of small, smaller, smallest iPods has the next size down ever been priced the same as its big brother? As far as I can remember the smaller ones have always been cheaper.
If the iPad Mini is an iPad 2 internally, the pricing isn't so weird. Those specs would make it a weak substitute for a new iPod Touch. (lower resolution, slower internals, not as mobile, worse cameras, etc)
Beyond the consideration that pocket computers make lousy solutions for the things tablets do, and tablets are lousy at the things you want a pocket computer for.
