Tony,
Just about everything I have read says the 3 for later this year will be 7" version or so, to fall in between an iPod/iPhone and the current iPad.
Would make sense given the flooding of the market with smaller size tablets.
I am wound up for the 2 regardless of what it is, even if it looks like my avatar.
If the 3 turns out to be better, I will just have sold my second iPad on eBay come that time.
BTW,
Is it Wednesday yet?