In reply to the rumors about the iPhone Nano, Apple is denying that they are creating such an product. Speculation is now moved to a new version of the iPod that will have some of the touchscreen features of the iPhone without the internet connectivity and phone features.

Another of the rumors is that the new iPod will have WiFi capabilities so that you can easily transfer music and movies between the iPhone and the new iPods.

This seems so much more logical than taking a phone based on several year old technology and crippling it further just to hit a lower price point.

To see what other manufacturers are coming up with to emulate features found in the iPhone take a look at the HTC Touch. I am not a real fan of this phone either as it too does not have 3G data rates. If you are in the market for a combined PDA/Phone/Internet device then 3G is a must. Personally although my Cingular 8125 is now ancient I will be waiting until the beginning of the year to see what emerges from other manufacturers before I commit to a new converged device.