For me, the 9.7 is the ugly in between form factor. Not the 7.9/Mini.
One device has to fit in my pocket. I've determined the current iPhone 4.7 meets those needs. The Plus is OK but not ideal for me ... I constantly was aware of it in my pocket and the screen size is underutilized in many applications, including Safari.
Then there's the question of a tablet sized device. The 7.9 is powerful enough and more portable than the 9.7 or 10.5. But it displays web pages in a full form factor (all the reading real estate of an iPad). And it actually fits in my jacket pocket and has full LTE support! This is my ideal all rounder device.
The 9.7/10.5 are certainly nice iPad's, but now they have to be carried in a bag, so they are competing with a laptop if I'm going to be carrying my backpack. For pure at-home use in tablet form, I don't get much more out of the traditional iPad form factor than I do the Mini. The normal sized iPad is better at multitasking due to some extra real estate, but it's still a pretty compromised experience, with many apps defaulting to a mobile layout.
The 12.9 is something I like to use at home as it's just more ergonomically comfortable to use lying in bed or sitting on the couch. Contorting my wrist to reach the trackpad at the bottom of the laptop while it's on my lap is probably going to cause some RSI, so I find myself reaching for the iPad more. Frankly, I like the 12.9 more than I thought I would. The multitasking experience is significantly better just due to the extra screen real estate. Most apps will go to a full iPad layout in split view mode on the 12.9. I always use this with the keyboard unfolded.
I agree. The 9.7 and 10.5 sizes don't interest me. When I want to casually read or watch video, there's no better device than a mini. And when I want to be productive or really immerse myself in a video, I wouldn't want anything smaller than my 12.9. For me, the benefit of having two specialized devices greatly outweighs the benefit of having one device of compromise.
But I use the mini almost exclusively at home since I don't really care to consume when I'm out.
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Given the "stay at home" role, the portability aspect of an iPad mini has little value.
I use my 12.9 more outside the home than inside because I use it more for productivity and creation which I don't do much of at home. My mini, however, which I use for casual consumption, I do use almost exclusively at home. But I have to disagree about its portability having little value at home. When I relax and consume, I like to do so on a device I can hold with one hand. With anything larger than the mini, I'm not able to do that for extended periods of time.
Owners of 4.7" nor 5.5" iPhones don't have the desire to purchase an iPad mini. The 7.9" display is not significantly larger than their phone
First, the mini is twice as big as the Plus. And that much bigger than the 4.7. I'm not sure how that's insignificant. Second, I've never heard anyone say the 4.7 replaces the mini. 4.7 is closer to 4 than it is to 5.5, so why not include the 4 too? It seems kind of arbitrary to draw the line at the 4.7. But really, would you want to read a book or browse the web or watch a video for an extended period of time on a 4.7? I had a 5.5 for awhile and I barely wanted to on that size.