If you think it's focussed on iBooks, do you expect it to come with a retina display?
For me the retina on the iPad 3 made a world of difference and actually enabled me to read much more of my Kindle books. With the iPad 2 I still crabbed Kindle 3 most of the time, now much less.
Yeah but I don't think that's Apple's goal with this device. I don't see them releasing a 7.xx" tablet because it better but because it can be sold much cheaper. To get the first time buyers and start locking them into the Apple ecosystem. So they can sell them bigger/better/higher margin things later on. At least thats what I thought until I saw the rumored 8GB version.