There's one thing that kind of bothers me about it though. The allure of a 7" for many is the more convenient form-factor. Not only is it more portable than a full-size tablet, but most people can actually one-hand them comfortably during use.
The problem with a 7" iPad is that aspect ratio would make this impossible for most people as it would be a fair amount wider. Unless you have Edgar Allan Poe creepy fingers, you aren't going to be holding it like that. Even if you're Mr. Fingers though, I'm pretty sure an 8" would make impossible.
Hopefully this is not the case, but if it does end up being true ... it's like Apple kind of missed the point. It's just a me-too product that doesn't really get it.