…The [iPod] Mini had a worthy replacement - the ash-based iPod Nano - and it was likely that favorable price points for ash memory were a driving force in the new product. But why not milk it? The Mini had been on the market a year and a half and Apple was still having difficulty keeping the Mini in stock. Why kill a best-selling product?
I think the reason, and, more importantly, an emerging Apple strategy, was announced as part of the keynote. Steve spent multiple slides showing off the Minis competition, and, not surprisingly, it looked a lot like the Mini. So rather than letting them catch up, he changed the game.
If there was ever a moment where Steve Jobs tipped his hand regarding what drives him, it was this moment.