I would be all over the new iPad mini if they release it with a retina display. I mean I know they are trying to keep costs down but apple has spoiled us with retina displays and now I can't see myself going back To a non retina display. So who else would like to see a retina display iPad mini ?
I don't want a Retina iPad mini. Not this year, anyway.
One of the reasons for shipping a smaller iPad must certainly be to hit a lower price point (while still maintaining a worthwhile margin.) And, being a lower-priced product, an iPad mini would probably sell more in the long term than the full-sized iPad. That must also be one of Apple's goals: to sell more iPad minis than 9.7" iPads.
I wouldn't be surprised to see individuals and families buying an iPad mini to complement their existing 9.7" iPad. Like how some people have an iMac as well as a MacBook Air. Especially if and when you can get all your "stuff" through iCloud on any Apple device.
But a Retina screen would work against the lower price point goal (with decent margin) as well as the market share goal. Because Retina screens are currently more expensive and might have lower yields than non-Retina screens.
I say "currently" because, just like all other semiconductor-based products, LCD screens will come down in price as manufacturing becomes more efficient and better technologies and processes are implemented. So a few years from now, it's possible that all Apple screens will be Retina-resolution. Just not this year. And maybe when the iPad mini does get a Retina screen, it won't even be LCD any more. Could be an IGZO-based OLED screen, like the ones Sharp and Apple are working on now.
[Forgot to say: I'll need to see one and try an iPad mini in person, and compare it against a full-sized Retina iPad before I can really decide. But right now I think it's more important to hit a price between $199 and $249. And that means no Retina for now.]