These days, people see news about this new and smaller iPad around the web.
Just like people pointed out that many kids are too young for a laptop. Although they love iPod Touch, it would be nice for them to have something larger because the games they like are mostly puzzle games where you slide stuff around the screen. They can also use this 7 inch iPad to read books. Having a bigger screen is nice for that stuff.
But an iPad is too big and heavy for kids little hands and it's a bit expensive as kid toy. A lot of parents may spend $300 on one that fits kids hands better. A 7" iPad would be a HUGE hit for the holiday season. A 7" iPad would probably cost the same as a Playstation, thus making it a realistic kid present. The $500 iPad doesn't fit that role quite as well.
Few advantage to have 7 inch iPad:
1. cheaper
2. lighter
3. good for reading books
4. easier to carry
If it had GPS unit and dash mountable, it will make GPS unit and with other things.
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