“It’s a rumor that won’t die: Apple and a 7-inch iPad,” Nathan Olivarez-Giles reports for The Los Angeles Times. But those rumors have been revived once again,with Technology Business Research analyst Ezra Gottheil stating that he expects Apple to announce such a device alongside the iPad 3.

In an interview with Computerworld this week (via BGR), Gottheil stated:

I believe that’s always been in the plan. Actually that’s a good form factor for some users, and although they will also charge a premium above other similar-sized tablets, they want to protect that price flank.

In addition to the iPad mini, Gottheil also suspects that Apple will introduce a new iPad case that includes a built-in keyboard, which would presumably be similar to Logitech and ZAGG’s popular case.

Steve Jobs famously stated that 7-inch tablets were too small, and would require users to “sand down their fingers” in order use them. Nevertheless, there are an increasing number of 7-inch iPad competitors, such as the Kindle Fire, which may cause Apple to reconsider that form factor.

While Steve did believe that 7-inch tablets were too small, that was before smaller, cheaper devices like the Kindle Fire became real rivals to the iPad. It’s possible the company has now identified the demand for these devices and has changed its mind. Personally, I very much doubt we’ll ever see a 7-inch iPad, but of course nobody knows for sure until Tim Cook and company hit the stage at the iPad media event in early March.