Going into a month of owning this mini, I have to admit, I'm loving it. Had a few reservations at first, but using it daily has disspelled any concerns.
I don't find screen size an issue, it's all relative. I really think that if Apple introduced the original iPad this size, all other tablets would never have hit the market. Just sayin!
I just picked up an iPad Mini the other day for my wife (birthday present). Got her the 8GB white WiFi model.
I have a 32GB iPad 2 (my son mainly uses it) and a 16GB 'New' iPad that my work bought for me, but I'm kind of growing on the small Mini since it's fun to use and very compact compared to the full size. I do notice that the resolution is similar iPad 2, where if I look closely I can see the icons and words a little pixelated compared to my 'New' iPad as that's crystal clear and the icons & text look very seemless on that. But that's not a deal breaker to me, and I'm now considering buying a black one for myself just to have as a fun travel toy.
The only thing I don't really like is that there aren't that many great cases for it. There are a lot of cases out there, but none that I really like much. I've grown on the iPad Smart Case that I have on my 'New' iPad (I just hate that it's hard to stand up because of the backing, and I wish Apple would come out with a Smart Case for the iPad mini, instead of just the Smart Cover (I never really liked them, and I had a couple and always ended up selling them).
SDM44: have you considered a slip case? I use a universal pointmobl case from RadioShack which was around $25. Works great for me. :)
Amazon.com: KHOMO ® Super Slim Red Case Polyurethane Smart Cover FRONT + Black Hard Rubberized Poly-carbonate BACK Protector for Apple iPad Mini 7 Inches 7.9 inch (Built-in magnet for sleep / wake feature): Computers & Accessories
Unlike some of the other less expensive cases, the plastic back on this has smooth edges that feel good to your fingers. Other have sharp edges and give you the idea that you might get cut using them. The one flaw I find with this one is the cover has a border at the edge which you can feel. I expect it may eventually wear in along that border. But for $13, I'll just buy a new one. This one is very light weight, so it preserve a lot of what I like about the mini.
Here's a link to the one I ordered, I didn't get all the other stuff just the case. Had one for my iPad, iPad2, wife's iPad2 and now my mini. I really like this case. Mine is orange!
7 Accessory for iPad Mini New Folio Folding Leather Case Cover Stand 13 Colors | eBay