i came across this while wandering around http://http://www.ilounge.com/index.php/backstage/comments/leaked-details-on-2010-2011-ipods-iphone-5-bumper-2-ipad-mini/ don't know how true it is.
The iPhone 5 thing sounds less likely... I know they had some issues with 4 but it still seems too early to me. The iPad mini sounds ridiculous at first, it'll probably garner the response "lol that's an iPod Touch", but the more you think about it the more sense it makes. One of the criticisms we kept seeing about the iPad is it wasn't quite as portable as some of us would have liked, so maybe they're experimenting with a middle ground.
I like the idea of an iPad mini. The current iPad is a little too big for my liking. I think a good size would be about the size of a DVD case, maybe a little narrower. Then it would still be pretty portable, and it would have a larger screen. Whatever Apple is making, it's bound to have retina display and a gryroscope.
Here's another link for those that couldn't get the one in the OP's to work(like me): http://www.ilounge.com/index.php/backstage/comments/leaked-details-on-2010-2011-ipods-iphone-5-bumper-2-ipad-mini/
I read an article recently stating that production of a smaller iPad was finished awhile ago, but they opt to not release it due to stipulation that it would just be a bigger iPod. Even though that's the claim competitors made of the 10 inch iPad anyway. Samsung's 7 inch Tab looks like it might win out that size niche, so I guess we will find out if Apple will even bother responding, or continue updating the 10 inch market they completely own right now. Either way, it's certain we will get an upgraded iPad in April.