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Apple may have had the lead initially with their iPad and they may have tried to take Samsung to the cleaners but it would seem they now feel the need to copy others. After all wasn't Apple that said users wouldn't use a smaller device. How the tables have turned (and again we see Apple copying the intelligence of others). Its a pity someone didn't patent the size to lock Apple out so they could keep the patent wars going on. Ppppfffttt Apple!!!! Tall poppy syndrome much!!!!
If all you want is to consume content, then a 7-inch 720p device is fine for HD movies and videos. Games and eReaders too. Content creation is another matter.

Most business documents are prepared in an 8.5x11 format. That is hard to read on a 7" display. Sure, you can scroll in landscape mode but it is still pretty small for graphs and illustrations.

A 7" device is just in a different category than a 10" device.
If the iPad Mini comes to pass, Apple will most assuredly position it at the $399 price-point, retiring the iPad 2.

That is the only scenario which make sense for Apple since pricing below $399 would put Apple in direct competition with Android tablets. While this might be good for competition, it would not, in my view (and I'd wager in the late Steve Jobs's view) be good for Apple.

Apple has, for many years, positioned itself as a vendor of premium products at premium prices and going head-to-head with Kindle HD or Google Nexus 7 or Samsung seems to be counter to Apple's interests in the context of that user perspective.

In the end, I don't think Apple will put out a 7" device. After all, Microsoft is competing head-to-head with a 10" device and some of the Android Vendors are positioning themselves with 10" (or almost 10") devices.

Time will tell.
If Apple is copying the intelligence of others then others might also have copied the intelligence of Apple. Everyone copied the technology from others and modify it and then present it in a new form. So, by this new technologies are coming to the market.
The smaller device will officially be called the iPad Mini and be priced starting at $329, pricey when compared with popular 7-inch tablets like the Kindle Fire and Nexus 7, which start at $199. ipad touch screen replacement
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