Apple isn't going to make their own phone. I don't see why people would want that. There's only so many ways you can dress up a number pad and screen. Trust me, Nokia has tried to fancy it up, and they all end up fugly.
What Apple can contribute to is the usability of the phone, maybe with an OS of some sort, but if Apple's strength is usability and integration amongst its own software, then I don't see much they can improve on in this area either. I can see a few things here and there on my Sony-Ericcson K700i that could use some improvement, or better integration amongst the file folders, themes, music player, and camera, but nothing major.
So the best thing they can do for themselves might be to not waste the money for now and make software that can be downloaded onto all new phones (Java!), like an iTunes Mobile, and even an iPhoto mobile if needs be, just with basic organizational features and such. And syncing with Macs would be a cinch, of course.