And 90% of consumer users will love it, not care that its not bleeding edge like it's big brother, and really never notice the difference. That's the point many of us have been making in this thread.
Here you have Samsung saying that based on market research, they are adding the smaller size, and it's getting step down internals, which will keep the costs down, and still make an desirable device for most people. The research clearly didn't show that they would have been better served with an actual GS3 Mini. The niche for small form factor + high end internals continues to look like one that is not worth investing in for OEM's.
Depending on how much cheaper the internals are, couldn't using the same guts as a the Galaxy S III keep costs down for both the "mini" and the regular GS3? The more volume you get, the cheaper the prices.
Just saying.