Great point here. I think that the Mini (if it happens, if that's the name, etc) will be another gateway drug just like the iPod touch. I remember Steve smiling kinda smugly about people who wanted the OS and the apps but didn't want the phone. The touch was how Apple got them in the door.

Now translate that to a tablet. For $200 you can get a device that has, inarguably, the best apps marketplace, at its disposal. Android tablets will have an especially difficult time keeping up with that, except for the ones that are purchased by people who simply don't like Apple and its ecosystem.