Wow, it kind if makes sense to me now why some things in iOS 7 seem a little different from what was gown. For example the "new" Siri voices at are supposed to be present are nowhere to be found yet. It's still using the same voice as before, and I haven't been able to find an option to change it.
Agreed, that would make more sense. This would be so awesome, too. I'm in the Navy, and having iPads on the ship available for official work would be super cool and convenient! Some people carry them around now, but they aren't allowed to bring them into secured spaces.
Here's hoping it's just as you said, an "iPod Touch Mini", and they keep the current iPod Nano (although a capacity bump would be nice). I love using it when I work out and don't want to see it go away!