Apple is a smart company, regardless of what you think of the products. Watch any futuristic kind of TV show/movie and what do you see people walking around with? Small devices in their hands that can make calls and also work as a tablet. Samsung was on the right path with the Galaxy Tab but unfortunately, the North American version had the calling feature removed (most likely due to carrier intervention... *bastards*).
I personally doubt that Apple would make a 6 inch iPad though but if they did, the smart move would be to make it that "all-in-one" device.
Despite the idiotic DOA comments from apple's lord and master, an intermediate device between the iphone and current ipad has always been more likely than a larger second model for the simple reason that it offers more portability whereas larger models would just have a smaller audience that could comfortably use them for an extended period of time.
Odds are that they will claim some spurious breakthrough is sufficiently magical to overcome the issues of a smaller size that were previously claimed.
Apple could release the iRobot - capable of merging with your body and giving you immortality, and I still wouldn't be interested. After the iPhone/iPod Touch/iPad stuff, I will NEVER buy anything other than a laptop from Apple again.
