Big Old Hoax!
Yeah, I also read the news that Steve Jobs said they won't make a 7Inch iPad, but I think they will, that's just Jobs crack jokes for advertising!!

Obvious hoax - a simple Photoshop job. Among other things, note the black border proportions are the same; a narrower % of border is something we're likely to see on iPad #2, to make better use of the screen area.

If he had a real 7-inch version, he would have posted it all over U-Toob by now.

I wouldn't mind a 7" pad. If price was $299 or less.

Sometimes ipad just too big to carry around everywhere..

Today's news no 7 inch
AppleInsider | Apple's next-gen iPad to get iPod touch-like back, wide-range speaker - rumor

Actually, he's holding a regular iPad in one hand and a fifteen inch one in his other hand...

It's all a matter of perception.

It looks more square than an iPad. Like it's 1024x600 instead of 1024x768. I suspect it's either a knock off tablet, or a Galaxy tab showing a picture of an iPad screen.