i've had it with you people!
In order to understand the iPhone nano, you have to understand why Apple would want to release one in the first place. My answer, is that they want to increase sales. Duh. In the US, what is the biggest barrier to sales? I argue it's the ATT exclusivity. This factor alone reduces sales by roughly 50%. Factor #2 is the DATA PLAN! That's what makes it too expensive for some.
So, I don't know what the Apple/ATT contract says, but I suspect that if you eliminate the DATA aspect, Apple might be able to sell the phone unlocked, or even sell it exclusive to VERIZON!
So, could this nano include wifi but exclude all the cellular data aspects? ie, the real cost savings in this nano is that you don't pay ANY data fees? You pay for a voice contract, the wifi is free, and everything else is ala carte?
Maybe you can't call it an iPhone. Basically, it's not what you've shown here in pictorial form, but Verizon might be willing to subsidize it, even if they don't get the data fees.
Meanwhile, it is too small to offer any of the Apps. It's just a regular cell phone, plus itunes, itunes movies, plus youtube, and essentially everything the original iPhone offered, before 2.0. You just have to use wifi to get the good stuff.
YEAH BABY!