Where? I may have missed that, sounds like complete fabrication.
This is the Android prototype that was shown at the MWC 2008 in Barcelona:
[youtube=http://i.i.com.com/cnwk.1d/i/ne/p/2008/android_prototype_550x385.jpg]Image[/youtube]
Where are the photos of that mythical pre-2007 no-keyboard Android phone?
And the truth hits you
http://www.youtube.com/watch?feature=player_embedded&v=1FJHYqE0RDg#t=3m04
Images from video

Sorry but Android was built to be very flexable and handle both inputs. Just the people who want to say everyone copies Apple are the ones screaming that it was an Apple clone.
This video was posted before the image leak to Gizmodo.
Also the video the guy with the touch screen states he has been living with that phone for the past 6 months which factoring in development cycles and programming cycles that would push it back before the first iPhone was announced they had been working on touch screen only device.
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