I am seeing more interest in smaller version of iPad.
With iPhone and iPad, Apple bridged the gap in price range with iPod shuffle / nano and with free 3G phones from the carriers respectively. iPad ‘Mini’ could do the same for iPad and defend against Android / Windows / Kindle tables that are sub $300. 
If Apple releases ‘Mini’ iPad, it could get really interesting for Kindle Fire and Nook tablets. The price range will be pretty much the same and iPad will come with the bigger app store with huge collection of apps.