For those who already have an iPad3 I think the iPod touch 5 is better compliment to it than the iPad mini, unless of course they own an iPhone 5 then substitute it for the touch 5. For those who don't own an iPad the mini might be a good option if they don't need the larger screen.

Personally, I would prefer a 5" retina iPod touch to either current touch/mini as it would be better suited for reading and still be portable/pocketable. But since it took Apple 2+ years to provide a 7.9" mini and at least that long to provide a 4" iPhone/touch even though most phone makers have been offering 4.5" and 5" models for well over a year, I figure it will be at least 2014 until we see a 5" iPhone/touch.