In reality this may be to (1) to keep costs down and (2) to distance the iPad mini from the more premium iPhone Pro Max.
All in all, this device leaves me wondering who this is for? iPads are mostly used for media consumption, no matter how Apple wants to position them. Not sure why this necessitates AI hardware, but perhaps people really start using iPads for productivity/creativity workloads that can make use of “Apple Intelligence” (the silliest moniker since “Spatial Computing” and “Retina Display”).
The comparatively small difference in screen real estate between an iPhone Pro Max and the iPad mini makes the latter rather pointless. Perhaps they are targeting people with a smaller iPhone who want another device to watch YouTube. What could have made a difference is a folding display. I think the iPad mini would have been the ideal candidate for that.