IMac 2012 or Mac Mini

I'm hoping in 2013 to update my early 2009 24inch iMac (2.66Ghz Intel Core 2 duo - 4Gb Ram - 640Mb h/drive). My present iMac seems slow at times, particularly when I have to amend large psd files (about 300-400 Mb) so I want something that will speed things up. I am sure the new iMac would - I’m unsure about the Mac Mini. I mainly use Adobe InDesign / illustrator / Acrobat / Photoshop. I don't do gaming.
The obvious replacement is the new iMac - 27”, 2.9Ghz, Quad Core Intel core i5 / 1Tb drive or fusion drive / 8Gb ram). I would BTO and have 16Gb ram. I can't afford the more expensive iMacs.
However, I am wondering if the 2.6Ghz Mac Mini (Quad Core Intel core i7 / 1Tb drive or fusion drive) maxed out to 16Gb ram would be an alternative as although I may have to get a display it would then be cheaper in the long run to upgrade it. From some benchmark figures I looked at it seems that the Mac Mini outperforms the iMac although I have read criticisms  of the graphics card. Although if the graphics card is better or equal to what I have now I don't see a problem.
Also, about the display. If I go for the Mac Mini I was thinking of the latest Apple Thunderbolt Display. I know its pricey but I would hope the old adage of 'you get what you pay for' would be true and it would see me through various Mac Mini upgrades. However, I was wondering - is it possible to buy a Mac Mini and use my current iMac as a Monitor for it. If so, how would that work - would I just see 2 hard drives on the screen? If the answer to this is yes then my wife has a Mac Mini (2010) which I could connect and try out first. Also, a few months ago I suffered a kernel panic - only happened once, not happened since - presumably that would be the computer not the monitor part of the iMac so shouldn't be a problem re connecting Mac Mini?
So any advice on any of the above would be welcome.

Hello Christopher,
Thank you for the star;  glad I was able to contribute. 
Interested in your comment I took a peep at Geekbench and going through the section marked  Max Benchmarks 2012  I agree it implies the Mini is the faster.
But it depends what you are comparing it against.  Did you notice that on the list there is another 27" sitting 7 places higher and scoring 12,857?   Moreover, the amount of RAM recommended by Apple is lower than some people are given to putting in their machines.   That too could make a difference.
Until 2014 I am still rooting for the Mini.

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