(Emphasis mine -- Ed.) I agree with this. Even though I, myself, would prefer a 7" higher resolution iPad, I do realize that the large majority of the target market will prefer the larger screen, but I don't believe it will have the same pixel density as the current iPhone 4 aka the retina screen. He also said there would never ever be Flash on the iOS. I, for one, would not hold him to his word on that one (two...three...whatever...n+1...). You're welcome to try, but historically, his ability to anticipate what the market will bear borders on prescience, and he will change with the nimbleness of a cleat-footed ninja in a log-rolling contest, if it will generate revenue.
EDIT: I'll even go one further -- the largest "risk" in my "prediction" is that he can't make a 10" retina display. If he can, then there won't be two, there will only be the one big ten inch. So, to reiterate, my prediction is that there will be two -- a "sport" (7", retina display, possibly iPhone 4 high res, maybe a little less), and an LX (10" display, incrementally higher res than first generation iPad, but not as high a jump as was the iPhone 3 to the iPhone 4).
And this is only for the second gen. Beyond that, all bets are off.