You said the iPad 3 was flawed....you didn't qualify it. But you are wrong, it is not flawed...the cellular situation in the uk made it hard to provide reasonable support in the uk....but that was addressed in the new refresh....and given that android is releasing new tablets almost every week, and some for very low cost, it was really smart for apple to release the 4 now...and they have received a lot of editor choice awards for the 4th gen iPad. It is clearly the best tablet experience money can buy for most folks. If the mini gets a retina screen, more ram, and a more powerful processor, it has the chance of toppling the 9.7 inch version.
Apple created mini to widen its market base -- lower-end model with portability. I expect it will continue to technically lag whatever full-size model is current.