Should Sammy sue Apple for copying there size? OK, leaving that alone...
I see a few problems for Apple with this tablet if it comes out as recently detailed. First, if they make it a 1024 x 768 the form factor will be 4:3 and that's not a good choice for a tab this size -- you want to be able to hold it with one hand. Second, at 1024 x 768 it will be less desirable than most of the competition with 1280 x 800 screens. Third, price ... there's been no confirmation on what Apple would sell an underspec tab for but Apple always likes to charge towards the upper end of what's out there so they will face stiff competition from the Android players. Lastly, if they make it higher spec with better than 1024 x 768 resolution it will cost them more and make it even harder for them to make the margins they're used to.
The upside to Apple and the reason they may offer an "entry level" tab is to put a hurt'n on Sammy etc. So, if they come out with a 1024 x 768 tab of 8" and offer it for, say, $300 they may not make any money off it (up-front) but they could kill off any chance at profit for Sammy etc.
So, I think it's entirely possible Apple will release such a tab and if they do and price it low they will probably kill off most of the Android tablets and absolutely make the market unprofitable for Sammy. Even selling it for a loss they will make money with apps and media. As much as Apple likes f'n the competition they would gladly trade up-front profit for a chance to kill off Android in this space.
I would not want an 8" iPad with 1024 x 768 resolution, but if they were to rethink the form factor and offer something like 1280 x 800 then I could be interested. I've been waiting for Sammy to f'n release the g'damn 7.7 in the USA for *hrist sakes -- if Apple get's here first too bad Sammy!
Brian