And it Should Walk on the Water - And Be Free!

Consumer expectations like this lead me to believe that, should Apple produce a 7" (or so) tablet computer, it will be sold as an iPod.

Update: Upon reflection, I would consider branding the mid-sized device the "iPad Reader" - to attempt to position it as something other than a budget iPad, and also to provide clear notice up-front that the functionality will be a bit different because it's primary purpose is for reading.