The issue with the Mini is that you'd usually expect it to be the budget option (since it has a smaller screen), but it's more of an Air with a smaller screen in terms of hardware and features, with a price to match.
Personally, I like my mini being a mid-tier device. Apple probably positioned it this way to avoid undercutting their cheapest model. It’s also a bit cramped. You’re sacrificing some usability for size and they’d rather people make that trade off because they want it rather than it being cheaper.