Apple Planning Smaller iPhone Priced - Redux

There were stories a couple of weeks ago about a possible low-cost version of the iPhone which I wasn't very impressed by (see http://myryama.posterous.com/apple-planning-smaller-iphone-priced-at-200-w) because it all seemed just a little unlikely given the colossal amounts of money Apple make from the full-cost version.

Now, I'm not so sure. I can't help thinking that a modestly priced feature-phone with deep and extensive voice integration, high-quality aesthetics, possibly streaming music from the cloud and offering a slick email and contacts experience via a free version of MobileMe might make a compelling package. Something for the "One last thing..." section tomorrow, maybe?