With all of the tiresome jokes about the iPad being just a big iPod Touch, you've got to wonder about a rumor for a smaller iPad coming in about a year. According to "upstream component sources," a touchscreen device between 5 and 7 inches aimed at people who want to consume content without creating it is coming, and it'll cost less than $400.
Of course, the iPad is a touchscreen device that's great for consuming content and decidedly less great for creating it. And as part prices drop, it should hit below $400 in 2011. And there's no real benefit to a middle-sized tablet between the iPad and the iPod Touch. But hey, stranger things have happened, I guess. But take this rumor with a big ol' grain of salt.