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Duh!!

What is so difficult to understand? It's a simple concept people:
It will simply be marketed toward people looking for a BEAUTIFUL, BALANCED MOBILE PHONE WITH A GREAT UI. (Apps and extensive web surfing are irrelevent, just as they are with a Sony Ericsson, Motorola, etc). For a typical advanced mobile phone with built in ipod, the size is perfect. Certainly better than most handsets currently on the market.
End of story.
 
My predictions

SO let say this iPhone nano is the real deal, even though i doubt it. I say the iPhone 3G will be upgraded when this iPhone nano is released. So...

iPhone Nano: EDGE, colors black white and RED) hi-res screen (same as 3G, but a smaller screen) 2.0 megapixel camera, 4GB, 8GB, thinnner by not much, a lot better battery life

iPhone 3G: 3G obviously, black white RED, same screen, 3.2 megapixel camera, 8GB 16GB 32GB, no change in size, and improved battery life
 
Apple will continue to upgrade the iphone in the June-July months. It only makes sense. No Replacement for the iphone at Macworld January. Speed bump MAYBE but not a NEW model per say. Iphone Nano would be a sidegrade so i could see that happening.
 
It might be ok for younger kids if price is low enough and an app for parent's iPhone to track them at all times. They have small fingers mostly too so size is fine. Might be a huge market there.

Actually that wouldn't be a bad idea... I could get one for my son and I am sure he would love it...

Oh - only one problem - no iPhone Nano... yet!!! ;)
 
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