It seems to me the main way Android is one-upping the iPhone is in selection. And one of the main factors of selection is screen size. Apple fans are historically into tininess, so offer an iPhone that looks like the long iPod nano and offers phone, iPod and limited app functionality. Would that be so hard? It would sell like hotcakes at $99 or even $49 subsidized. Then offer an upgraded version of the current iPhone as is expected. THEN kill the Android market with a massive 4.8" quad core 128gb, 3gb ram 3 day battery for those who don't wear tight pants. Don't tell me about fragmentation. App devs will jump on making apps for both the new models. Then build in some pretty widgets and a bit more customisation and it's game over. I just don't see the point of limiting people to one size of phone. They don't with iMacs, MBs, iPods, and it's looking like the iPad will be available in two sizes. The iPhone needs it the most out of those I'd say.