GoodEreader reports, "Kobo insiders have disclosed to Good e-Reader that there is serious internal chatter about developing a second generation Mini."
A H2O Edition 2 with a 5 inch screen sounds pretty perfect to me.
I love my H2O 1, and I know people also prefer the large screen size of the Aura One. Still, I miss being able to easily slip an ereader into a pocket. I still use my Sony PRS350, perfectly pocket-sized! but it lacks screen lighting among other things.