Before it got its plug pulled, the Surface Mini allegedly had a 7.5 inch to 8-inch display, an ARM processor, and ran Windows RT 8.1.
The report implies that Microsoft had little confidence in the Surface Mini's abilities to compete within the small tablet market segment, citing a lack of unique features or impressive specifications to give it appeal. We've heard the same reasoning before - it was right after the Surface Pro 3's launch. Other reports followed shortly, asserting that Microsoft intends to launch the Surface Mini later in 2014, with an all-touch version of Office posing as its 'killer feature'.
Although having its production canceled at the last moment doesn't sound very optimistic, it is unlikely that Microsoft completely abandoned the project. After all, if everything is paid for and ready to go, restarting production should be one phone call to China away. Perhaps Microsoft will make that call when the right time comes.