And you think Apple's dev cycle is less than that? You're wrong. FYI, iPads were in development before the first iPhone ever shipped. Steve knew about the mini long before he passed.
If this is inconceivable to you, you don't know Apple well at all and just how long they think about things. It has been a contributing factor for decades as to why the hardware is never the latest and greatest. You have to rush to get that out the door... Apple doesn't. There are things in the lab you won't see for years.
Just FYI, if I have any sort of emoticon next to any phrase, statement, etc., it usually means there's a decent amount of sarcasm, satire, humor, etc. embedded within the text and as such that foregoing line of text should be read with such sarcasm, satire, humor, etc.

I like arguing, but I also like joking around too!
That being said, just because it was in development or considered does not mean that it in its final version or even close to final version were around at any given time period, with this given time period being Steve Jobs' life. What about that well bandied quote that Jobs thought a 7 inch tablet was pointless and defeats the purpose? If true, does that mean that he's simply Houdini? Further, given projects that we (1) know he spearheaded with more vim and vigor than others, and (2) his general demeanor, sensibilities, and behavior as CEO of Apple post 1997, where in Apple's long, illustrious line of products do you see something akin to the iPad Mini? And by akin I mean (1) something noticeably overpriced (which the iPad 1 was not - read the Giz article), (2) behind the times in innovation, idea, and form factor, and (3) something that simply fills a slot in the market chain instead of creating its own slot in the market chain.
If this was Jobs' work then he truly did lose a step or two near the end of his life, and that's a shame IMHO. Because as much as I dislike iOS, the iPhone, and my iPad, Jobs was a brilliant man.
EDIT:
I noticed a fellow user posted Jobs' thoughts on the 7 inch tablet scene.
"Just over two years ago, Apple founder Steve Jobs held forth on an earnings conference call about the impossibility of making a good tablet with a screen smaller than the iPad's roughly 10-inch display."
"There are clear limits of how close you can physically place elements on a touchscreen before users cannot reliably tap, flick or pinch them," Jobs said, citing Apple's research. And no, a higher screen resolution wouldn't help upcoming Android-based tablets: "It is meaningless unless your tablet also includes sandpaper, so that the user can sand down their fingers to around one-quarter of their present size."