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Jobs failed to mention the 3.5" screen of the iPhone in his rant because it doesn't apply to the argument at all. The point is, iOS has two screen sizes. One screen (the iPhone) has user interfaces built to take advantage of that size. The other screen (iPad) has more screen real estate and the UIs are created to take advantage of that.

If a mini-iPad was released and people just shoved their iPad UIs onto it then it would make for a sub-optimal user experience, which goes against everything Apple is for.

If an iPad mini was released then developers would have to develop a third UI for their apps to fit a third screen size. Not a big deal. It could certainly be done. But it sounds like a pain in the rear to me (I am an apps developer).

there is an ipad mini, the ipod touch, or iphone

Do I care about Apple? NO! Apple should make IToilet next.

Jobs fails to mention a lot of details, but he's not trying to teach everyone how to maintain efficiently focused business operations. What you fail to mention, is that development and production of a product with a marginal product space is a waste of resources. It's not really a matter of whether it's possible, it's whether it's worth spreading your resources to create a product for such a limited space. This old divide and conquer business mentality is why our economy has lost its strength.

What people don't realize is that increasing market share isn't the only goal that exists for a company.