Earlier this month, Gizmodo posted images of an iPad mini mockup that resembled the larger iPad. Gruber suggests that although this design is plausible, the device will likely have a smaller bezel.
Now, I expect the iPad Mini will bear more resemblance to a full-size iPad than it will to an iPhone or iPod Touch. For one thing, it's closer in size to the iPad-as-we-know it, and for another, all credible reports (along with several of my own little birdies) point to the smaller iPad keeping the 4:3 display aspect ratio.
But if you shrink the device enough, and reduce the weight enough, would such a device still need a bezel surrounding the display of the same proportions as the iPad-as-we-know-it? Maybe not.
Taking his thoughts one step further, iMore has produced a mockup of an iPad mini that keeps a larger bezel at the top and bottom like an iPod touch but still has the 4:3 display ratio of the iPad.
Take a look at that image below. Apple is thought to be aiming for a November release of the iPad mini.