The Next Web is reporting Apple's event expected to launch the smaller iPad will also focus on iBooks and education. This couldn't make more sense.
The rate of iPad adoption into education is unprecedented. The knock against the iPad as a textbook replacement has been the price and size of the iPad for younger students. The smaller iPad will significantly lower the entry price and the size and weight of the device should be perfect for younger hands.
I think the adoption rate is set for an explosion very soon.