iPhone Nano concept photo lacks credibility

Lately there have been several rumors flying around that there will be an "iPhone Nano." We have seen everything from product sheets to third party cases, but what we have not seen thus far is an actual picture of the iPhone Nano. MacRumors has gotten a hold of what appears to be the iPhone Nano.

This picture lines up with the third party case that we recently saw. We are going to report this one as a rumor for several reasons, the first reason being MacRumor doubts the source that provided them with this picture and the second being Apple would more than likely not change to form factor of the iPhone. Are we to the point that we want these products so bad that we fabricate news in hopes of getting Apple's attention?

With a iPhone 3G as cheap as $199 ($149 refurbished) is there really a need to create an even cheaper model and will this model be cost effective? We certainly think the iPhone Nano would be a fun little handset to have if you're trying to get iPhone features but don't quiet want the iPhone 3G. If this rumor turned out to be real we feel that this model would particularly appeal to women.