This user has been happy with the 7" Kindle Fire since December. Yes, it isn't an iPad. Yes, it doesn't require a "capped" mobile wireless data account. Yes, it was $199 not $500-800. No, it isn't as cool as an iPad, nor as heavy. If Apple gets into the market at a desirable price point, they will win market share IMHO.
iPad Mini: 6 Reasons Apple Must Do It - Hardware - Handhelds/PDAs - Informationweek