This is likely.
Why are people winding themselves up with this...
Expect a nice 4S hardware boost to the best phone on the market and be excited. If they come up with a new phone AHMAHZING but if they do not so what... The iPhone 4S will still be the best selling phone until the iPhone 5 comes out.
People seem to be winding themselves up and working themselves up for disappointment. They don't even know what the iPhone 5 is... yet they want it just because it is different. That is just an odd desire to me. The iPhone 4 is an awesome device. Improving its specs is awesome. Yet people would rather have some new device they know nothing about instead.
As Gruber pointed out the idea of a teardrop design makes no sense, yet that is the strongest possibility for the iPhone 5 rumors. Given that, I wish people would just settle down. So many of the people here are intentionally setting themselves up to be angry and disappointed, and for no good reason. Yet so many of them will blame Apple, yet Apple did nothing to mislead them in any way shape or form.