7" tablets have been around, but so were mp3 players (even good ones!) when they debuted the iPod. Until the Nexus 7, I don't think there were any worth looking at.
A well built Apple branded tablet with iOS (and all the apps) for under $300 might not be technologically interesting, but it will immediately outsell everything because everyone's aunt will know exactly how it works and every app you've heard of will work with it.
ICS/JB are fantastic, but I'd predict that iOS's sheer familiarity will win out for most consumers. It's not really much of a prediction since Apple's so handily owned the 10" tablet market despite an abundance of competition.
A maybe more importantly, a smaller iPad is needed to break into certain businesses who could use something bigger than an iPod, but portable than an iPad. For example, wait staff at a restaurant. iPods are too small, and an iPad is too big. Something in between is just the right size. I've also seen some cabs/shuttles using small Android tablets for GPS & dispatch. Here, the ideal size for something mounted is is between an iPad and an iPod. I could go on and on with ideas.
The big issue is: The new iPod Touch 5th gen is $300. For a 4" screen. How can they sell the new iPad at even $300? It would have to be $350, minimum. The iPad 2 is still $400, why buy a 7" for $400 when a 10" is $400??
I don't see how Apple is going to price this effectively without cannibalizing their own markets. I guess they could switch up the 5th gen pricing but they JUST announced it, and it would come across as a cheap trick to move the rest of the 4th gens at full price.
A well built Apple branded tablet with iOS (and all the apps) for under $300 might not be technologically interesting, but it will immediately outsell everything because everyone's aunt will know exactly how it works and every app you've heard of will work with it.
ICS/JB are fantastic, but I'd predict that iOS's sheer familiarity will win out for most consumers. It's not really much of a prediction since Apple's so handily owned the 10" tablet market despite an abundance of competition.