Well, here's my opinion - and I've made a mockup 
Here's my mockup. And because I'm British, the phone's going on the best network we've got - T-Mobile.
Thanks
Those of you insisting that it the Nano will maintain touch screen capability are missing the entire point of offering a less featured model.
Not really. All iPods utilise the same control system. All 3 models operate a basic click wheel control system. Even the shuffle has a cutdown click wheel. A nano iPhone would similarly have a similar control system - not something totally different. Therefore, the iPhone nano would have a touch screen - possibly a lesser featured one, but a touch screen at least.
#1 This product will be geared toward the younger market. This is not a MAYBE. They will not release an iPhone nano with adults in mind. Are we aware of how many 13-19 year olds carry a cellphone and an iPod nano? The numbers would stagger you. Which leads into number 2...
As a 13-19 year old, I know that there are many people that use a mobile phone and an iPod nano - my mum for instance does! And many other mums I know do too. Reason? Compact, versatile, colourful and fun. The big iPod just isn't good for them - they want something that's 'handbag friendly' which the big iPod isn't. So this product would be primarily aimed at teenagers, students, women, and generally people who want a compact iPhone. Not everyone needs the MS Exchange push rubbish. Some people just want a phone. That's what the iPhone nano is for. Also, at a considerably cheaper price, most people will be tempted at the idea as some people can't afford the iPhone. It is very expensive for a mobile phone.
#2 This will be 1 device to combine the younger market's cellphones and ipods. The touch screen is not the incentive to buy...this factor is the incentive to buy.
Wrong again. All young people are constantly obsessed with the 'newest available technology' and a touchscreen would be most wanted. Trust me. I know. Mainly just for bragging rights and self-promotion.
#3 A touch screen would never jive with the 13-19 year old market. They can't handle it. It will be trashed within hours, or days. Apple would either be replacing every lother one they sold, or be pissing off a lot of customers who (or whose children) broke or signifcantly injured their phones within a very short amount of time.
How stereotypical. Really. For a start, we have smaller fingers so we're probably better at using a touchscreen than you lot are! Accuracy is of primary importance! It wouldn't be trashed. It's glass - it won't scratch. Unless we get diamonds on it. I could not disagree more. Also, and many young Apple users will agree with me on this - if it's Apple, we will take the utmost care of the product as we can't afford to buy any product revisions. It has to be kept in near-new condition!![]()
here is a quick mockup i did based on some of the others seen in this thread. Expect full use (and maybe some new implementation) of the clickwheel, along with navigation that looks very much like the iPhone, but feels very much more like the iPod:
(p.s. I changed the SMS icon to blue because i view those as top 2 functions for younger cell phones and 2 green icons looked bleh)
Here's my mockup. And because I'm British, the phone's going on the best network we've got - T-Mobile.
Thanks