The iPad, or it's spawn, will eventually get smaller - everything seems to eventually. The only question is "when", what it will cost, and what it will be capable of doing relative to popular software and tasks at the time of it's release. As the world economy falls apart and inflation sets in, companies are going to have to create more margin on their sales to people who have less purchasing power per dollar. A 7" iPad could be for Apple what the netbook was to Windows PC companies - a temporary shot in the arm until market trends become more clear.