The iPad Mini rumors are far more speculative. There have been no alleged component leaks and nothing to go on beyond rumor and tech gossip. The justification for the iPad Mini seems to revolve around the success of 7-inch tablets such as Amazon's Kindle Fire and Google's Nexus 7. Amazon and Google both have a 7-inch tablet, so Apple needs one too.
He also posted an interesting graphic showing every current model of iPhone, iPod, and iPad graphed by price. It's an interesting graphic that clearly shows the price point that Apple would need to hit for any smaller iPad.
That graphic raises an interesting question. Do buyers want a smaller iPad -- that is, a device with a smaller footprint or form factor -- or are they looking for a cheaper iPad?
If the market wants a smaller iPad then Apple is going to have to get its thinking cap on and come up with a whole new class of device, and price it to fit into the blank space in the chart above. But if Apple wants to sell a cheaper iPad then the solution for this could be in the form of subsidized iPads.
In my opinion, the case for the iPad Mini hasn't been made.