Personally I think the iPad mini is the iPhone/iPod. I see no reason for a mid-sized device.
What resolution would it be if all the devices are moving towards retina specs? 1024 x768 at a quarter of the physical screen area of an iPad3?
Yes AAPL stock will probably dip with profit taking after the new product announcements, but I'll be keeping mine long-term.
The longer Apple' dominance continues, the less the competition is... erm... competition.