I just can't see it happening...Apple cannot be that stupid. No one wants a refreshed iPhone 4. It's beautiful and all, but people want to see something new. Not to mention that 90% of consumers when shopping for a new iPhone, will see the cheaper iphone 4 next to a more expensive iphone 5 (or 4s) and not see any difference. And if they look exactly the same, most will opt for the cheaper one. It has been proven that design sells just as much as anything else. And there are a ton of people who buy phones based on looks alone, and really have no clue or care about what's inside.
I think a refreshed iphone 4 will hurt apples sales TREMENDOUSLY! And I think Apple knows that. They want to sock this one out of the park and another iphone 4 (or something very similar) just won't do it.
If this is what Apple is planning to do, they picked a terrible time to change the product cycle and make us wait 16 months. Now more then ever, people are expecting something huge. They have given people an extra 4 months to start all these rumors and speculations. Had they launched a refreshed iphone 4S in June, I don't think people would be as irate (even though I still would have been). But now with all the rumors, hype, etc. I think Apple fans worldwide will be totally furious.
I know my expectations have gone way up since there was no mention of an iphone at wwdc. To the point that I know I am going to be let down in one way or the other. But I am ok with that as long as they give me something new and exciting. On the other hand, if i get another iphone 4 with a better camera and a faster processor, I will NOT be getting one. And I am sure there are millions of others feeling the same way. And I just can't see Apple wanting to risk losing millions of sales. Just my $.02.