I disagree that a mini tablet is pointless. While it isn't the most practical device in the world, it's good if you're looking for a time killing entertainment device for long car/plane/train rides, or just lazily lounging on your couch. Besides, it's not like a regular sized tablet is going to add much in terms of practicallity anyway. I need a portable device that does sheer entertainment, and my Iphone screen I find is far too small for things like playing games and watching movies. My Nexus however is a perfect mid ground, small enough to carry around, it even fits in my a pocket (just barely), while big enough to enjoy gaming, watch movies, read magazines and books, etc, on a decent sized screen. Also, I can stomach spending $200 on a tablet much easier than forking out $400 for one.

There are a few things at play here:

1 -- Just because Steve Jobs said it, doesn't make it absolutely true.
2 -- The comments I found were made two years ago, a lifetime in technology.
3 -- Make no mistake, the primary reason Jobs was dismissive of mini-tablets in 2010 was because Apple wasn't making them.

Finally, you said, "Theres no point, if I want something small I might as well get an iphone, and If I want something large I'll get an ipad. There is no in between." This is almost exactly what the general opinion of tablets was before the iPad. "Oh, I have my smartphone for small things and my laptop for big things. There's no room in the market for something in-between." Apple proved that there was a market for an in-between -- or maybe they made the market. I don't really know or care how it all happened, but I know that it could definitely happen again.

that's like being christian and not turning the other cheek

An iPod is basically a mini iPad....there is no need for an iPad mini.