iPad Mini: 1600x1200 resolution?

I have a sneaking suspicion Apple will over-deliver on the iPad Mini and go with a 1600x1200 7.85" display. I don't think they really need a super-cheap tablet so soon. A 1600x1200 resolution would give it a dpi of 255. That would allow it to use a lot of the same graphics as the iPad which has a dpi of 264. The images would only be about 3.6% bigger in terms of physical size. Battery life, weight and cost shouldn't be an issue. I think an 8GB model for $300 would be a huge hit.