I think the iphone nano wil be targeted at the lower end of the market to better compete with other entry level Android phones. Apple will still come out with a revamped flagship Iphone 5.
Those aren't my rumors... I just report what I read.
Those are just prototypes and some say Apple has several of them so there isn't a GizmodoGate like last year.
As for cost... it's Apple... they have enough leverage to make anything cost less... heck... they're using up so many components they're making it hard for their competitors to compete with them on price.
Well... PSPs and DSxs are still cheaper than iPod Touchs(es?ii?)... it's hard to believe PSPs are now $130.
I think that the Nintendo 3DS is going to be a tough sale at $249 in a few weeks but it will probably still sell.
But I agree... after playing Street Fighter on the iPhone... I was shocked at how good it was... better than my old Sega Genesis console from Wayback Land... heck... almost as good as the PS3.
That render looks like the new iPad 2 scaled down to the iPhone form factor.
Articles about it say that they are moving the antenna to the logo on the back to alleviate the "death grip" but that's not believable considering you still can block that area with your hand.