IPad 2 vs. Kindle Fire My opinion

Amazon announced a few days ago there kindle fire. A kindle for books, music,games,etc. Well it's basically a 7 inch tablet that looks a lot like the Blackberry Playbook and runs a heavily tweaked version of android 2.1 or 2.3. It has no home button and no cameras. Which the iPad has, the thing is it starts at $499. The Fire is just $199. Which means it's a low end tablet. So they're saying that the kindle fire is the first true competition to the iPad. Are they right? First of all they might be in the same market but as I said the kindle fire is low end the iPad high end. So I think the Fire might slightly put a dent in IPad sales but it probably won't last very long (either that or it will just kill every other tablet). Amazon said they might make a bigger version if the Fire is successfully but that would make those who bought the first one mad and if they don't plan on sticking with a 7 inch device why first release one? I think it will sell good until Apple makes an IPad mini. If Apple made an IPad mini for $249 or $299. That will squash the Amazon Fire. The only thing is it might jeaporize the IPod touch. So the price is either going to be higher or they'll make the Touch's price lower. Well I think they have a good tablet on there hands until apple starts to compete with them with the IPad mini. I'll say that it is the best low-cost tablet.