The people who are outraged are geeks. And geeks, who take the time to write about apple's latest product offerings and whether the price point is proper (like me, here), really care about things like capacity. To them (us), yes it seems outrageous that you would pay $250 for 4 gigs and $300 for 15.
But, to most people 4 gigs is enough. I assure you that the current style-oriented iPod owners (who Apple is obviously targeting with the mini) did not do a price vs. capacity analysis when they decided to buy the original iPod. It was cool, other people had one, it was small, it held a "bunch" of music. Well... the mini is cooler, it's smaller, it still holds a "bunch" of music, and... it's a little cheaper.
All this commentary is meaningful -- it shows that no geeks will be buying iPod minis. But who cares?
Question 1 is a little off. SoundTrack is not really a more advanced version of GarageBand -- it's designed to do a completely different thing. Sure, both programs allow you record audio and MIDI data, but that's really where the similarities end.
SoundTrack enables non-musicians to create polished, commercially viable music by assembling loops. It's not a ProTools or Digital Performer competitor (like Final Cut Pro IS a Premier and Avid competitor). GarageBand allows the loop-building, but the emphasis is on playing the virtual instruments through the keyboard, recording your own stuff. It may be too bold to say that GarageBand encourages creativity while SoundTrack eliminates the need for it.
The iPod Mini Is Not Over Priced
Macworld: The Best Is Yet To Come