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The 7-inch iPad 2 has been a rumor swathed in fantasy since long before the 10-inch iPad was actually announced by Apple. But according to a new report, the 7-inch iPad2 is closer to reality than ever before.

The Economic Daily News, a Taiwanese newspaper, reports for a second time seeing a new version of the iPad, one sized between the iPod Touch and the current iPad. What’s more, the newspaper is says this tablet, with a 7-inch touchscreen display, will be ready for market by Christmas.
Similar reports have …