In Regards to all the "low-cost" iPhone Rumors
Firstly - Steve jobs was well known for changing his mind (or appearing to) - announcing in public that apple definitely wouldn't do a thing, when it was beneficial for people to believe that, and then going ahead and doing it anyway later on. At one point Steve Jobs insisted that the iPhone would never support third party apps; just think what the world would be like now if he'd stuck to that.
Secondly, I sort of agree that there's too much emphasis on "low cost" in these rumours, as if Apple are going to be putting out something really cheap and shonky - that isn't going to happen. But, there will be a "lower cost" iPhone, in the sense of costing less than the current flagship model, because there always has been. Right now the 4 and 4S are selling very well as lower cost iPhones. The point of the 5C will, I think, be to replace those (and possibly the 5 as well) as a lower cost phone that actually costs apple a little less to make as well, so it's more profitable - but it will also get everyone on 4" screens and lightning connectors, which obviously the current 4/4S can't do.
So in a nutshell, cheaper, but not cheap - and sure it'll be a nice phone in its own right.