What is the deal with the iPhone nano?

Adding to a small stack of rumors about a supposed iPhone nano, case-maker Vaja today quietly added the category to its website (pictured after the break). Frankly, we're not sure what to think. There are a number of ways in which Apple could produce a cheaper phone or alter its subsidy deals, so the idea of an iPhone that's simply smaller makes very little sense. Yet, here we are showing off the site of a reputable accessory manufacturer with a brand new phone listed -- ostensibly just a teensy version of the iPhone 3G. Of course, this is probably just rumor, speculation, lies, corruption, signs of an unquenchable thirst for power, and a glimpse at the machinations behind one of the greatest conspiracies mankind has ever known. So, we're posing the question to the biggest brains of all: the Engadget reader. Is Apple working on an iPhone nano?

http://www.engadget.com/2008/12/29/w...e-iphone-nano/