I See 3 Problems Here...
One, the camera. I don't believe there will (or should) be a protruding camera. Looks bad, and will feel bad, snagging on various things in close proximity.
Two... a 4.7" screen makes sense, a "phablet", doesn't. The former will begin to mildly cannibalize iPad minis... the latter will really take out a chunk of that market. (And both will put the Touch market further into decline already.) I'm not seeing much upside to this other than holding off Samsung, and for not much profit. Apple's not really known for playing defense, is it?
Three... whither the dual-led flash...?