They've got a place...just not for me at this point. There's a 27" iMac in my future though, that's for darn sure.
As far as the pricing goes, they don't care. People that bought on price have been buying plastic knock off tablets for a while now anyway and they're not interested in that market. If you don't have to compete on price, why would you?
Price comparison between the Mini and the iPod touch? The success of the iPod Mini in comparison with the Classic shows that they aren't necessarily competing products. Plus there is a big difference between iPad apps and iPhone apps.
If I had cash sitting around where I could pick up an iPad now I might be tempted to get the iPad 3 instead of the 4 since it would still work with all the 30 pin connectors I've got around here.