I'm just waiting for the iPhone mini. Think about it. The iPod mini is what made the iPod take off... so I think we can expect the same for the iPhone.
Wait wait wait, no.
A) The iPod Mini was not what made the iPod take off. Many people already WANTED an iPod but couldn't afford it. The popularity of the device was already well-established.
B.1) The reason you're waiting for the "iPhone Mini" is because it will be the popular device upon which the iPhone platform will take off? That doesn't make sense. Buy a friggin' iPhone for its capabilities, not for the status of owning an iPod.
B.2) You also assume that the iPhone won't be popular until they release a Mini. The first iPhone may not be widely used, but it will be popular. The difference between the iPhone and the iPod is that the iPod was a sneak attack, in a way. Nobody thought Apple would release one. PMP-makers of the day were like, "Apple? PMP? WTF?" and the iPod uptake was very slow at first... in fact it didn't get
really popular until around the 3rd-gen iPod. This time, all eyes are already on Apple. Everyone knows the iPhone is coming, everyone knows what this thing can do... and a LOT of people want one. Only the price may hold some people back.
B.3) You and others may assume the iPhone is an entirely different platform for Apple. I see it, however, as a progression of the iPod line. Apple has been wanting to make an all-powerful iPod for quite some time. Well, this is it. The iPhone may have its own tab on apple.com, but there's no doubt in my mind that this is the future of the iPod. Therefore, I wouldn't think of it as a different device. I'd call it just a new type of iPod. Meanwhile, I am confident Apple will release a 6G iPod. It will have an iPhone-style interface, and perhaps even web-browsing through wi-fi... but won't be an iPhone. Eventually the iPod will continue to grow and gain abilities, and my guess is that it will reabsorb the iPhone, just as it did with the iPod + Photo. Besides, "iPod" is a more appropriate name than "iPhone," especially for a device that is so much more than a phone.
Imagine the iPhone mini at $250. Everything the same except a smaller screen and no video playback.
Sorry, but I think that would be a terrible idea. Only cut video? c'mon...
The iPhone's size is approximately the size of the current iPod... which isn't that big to begin with. But if you're going to have a device that can still browse the net, you'll need the bigger screen.
An appropriate iPhone "mini" or "nano" or what-have-you would have calling, tunes, texts & visual voicemail, all with a single-touch screen environment. Now THAT would be a popular device with the young-ins. There wouldn't be any room for a keyboard, so Apple would have to use a pop-up keypad for texting, probably.
Anyway...
-Clive