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An upgrade. Here is a list of what the mini has compared to ipad 1.
Has a webcam 1.2 MP vs None
Most tablets have a webcam; Video chat with other people
Has a rear camera 5 MP vs None
Most tablets have a rear camera; Can be used like a point-and-shoot camera
More cores Dual core vs Single...
I have a 3 and a mini. I take the mini everywhere with me. Screen doesn't bother me. I read all the time on it, as soon as I get home on my wifi, everything I've done on the mini syncs up with the 3. I also often use both at the same time. If I was forced to choose one device only it would be...