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Originally Posted by joehunt
Oops I forgot that Apple doesn't "do" new iPads in the same cycle as new iPhones, so I guess we just have to wait a bit longer  But yes $299 for the iPod Touch 32gb doesn't leave much room for competitive pricing of a 7" iPad, if such is ever released.
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Competitive pricing is not really Apple's modus operandi, and iPod Touch is not a replacement for a 7" screen or vice versa Try using a 7" device as the mp3 player you go running with. And iPod cannot run iPad apps. I think they can both co-exist.
I think a more likely scenario is that the mini replaces the iPad2, which they still sell.