My first thought is that it would all the things to love about the iPod plus 3G connectivity. The ultimate mp3 player. Then I just had an upthought. Outside of a JB and microphone/headphones, this thing is an iPhone. Strip out the design of the iPhone 4 and other features you have an iPod touch. So this thing turns from being THE iPhone 5 to the iPhone lite/mini. if it shares the same form factor as the iPod Touch, it could be aggressively priced at $150-200 USD. Making it a very affordable smartphone. You want to the "apple tax," buy the iPhone 5.