Certainly a strange move, and when you think about it, the iPad has been kind of poorly managed compared to other devices. The iPad 3 had a shorter lifespan than expected, the iPad 4 is substantially faster but uses the exact same design, but is also in the unenviable lightning/dock connector cut off spot that rubs some people the wrong way. Now you have this 128gb model released ostensibly in the middle of the product cycle, but also amidst rumors of a somewhat imminent upgrade that will feature a completely new design.
If the iPad 5 comes out in the foreseeable future, a lot of people are going to be pissed and the bigger picture of Apple's iPad management will be just a lot clumsier than how they normally handle things, but, it will still sell prolifically because even in spite of that it is a very desirable product.
As for the 128gb iPad existing. It's about damn time, honestly. It's a little pricey I guess, but I don't really think it is 'for' the average user either, I think the people who will buy the most of these things will be people who have discretionary or institutional or work related budgets and for whom $799 isn't even considered an 'expense' really, and yes, with any luck 32 will become the baseline by the next revision and prices will come down relative to that, which will surely incense some people, but I doubt it makes a difference.
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