I don't want to see a 7 inch iPad, and here's why; Economies of Scale. The introduction of another iPad size will nopt increase the number of sales markedly, in my opinion, as many who would buy the smaller one would have bought the original if there was no choice. I don't see it attracting enough new purchases to overcome the increased cost of production.
There are also other costs that can quickly become a burden when you start adding new SKUs to a current product line-up. Costs that must be recovered from the consumer.
I would instead like to see the iPhone gain a centimeter and a half of screen real-estate. This would make it that much larger than what it is now.
And why are you sop worried bout Apple profits? You think like AAPL shareholder and not like a consumer. People want different size. That's it. Nobody said that production of current size should stop. Can everybody have what they want?