I think you will consider the iPad Mini less... spacious than expected.

Note: I was able to pick one up tonight. The Verizon store and Target didn't have them, but Best Buy and the Apple Store did. Thankfully, Best Buy is one of the 5% cash back options this quarter for Chase Freedom! 😀
I went to Best buy early this afternoon, they only had one 64GB mini in white & nothing in 4G LTE models.
i am returning the mini (350$ with tax)and buying a ipad 1st gen 64gb (255$ shipped) for my 2 year old. I think the new mini is a waste with bad screen resolution compared to the retina products. im not impressed with the mini at all.
Hmmm, so the iPad mini has a bad PPI so you return it and get a device with worse PPI. I have an iPad 1, iPad mini, and iPad 3. Honestly, I was expecting the iPad mini to have a worse display than what I saw when I turned it on for the first time. I think the screen is just fine, MUCH sharper and better than my original iPad's.
The iPad 1 is very slow compared to the mini. I would advise against getting a first gen iPad as even the most basic Core Animation games/children's apps are pretty sluggish. Also remember than the iPad 1 has practically been discontinued by apple with iOS 6 not being supported.