Come on... Seriously?

If Cupertino is, in fact, releasing such a device, I hope their wonderfully imaginative creative team comes up with a better name.

We have all seen the mockups that people have been spreading around of what such a device could look like. Do they REALLY want a phone that's half the size of the current model?

I think not.

A huge fan of Apple Innovation, and a huge critic of Mac-elitists, I'd like to share what this tech freak would love to see in his "iPhone Nano".

Lower price point

This much is obvious. Five and six hundred dollar prices are simply too high. Even for those of us now out of college, at that price I'm juuust fine with my $200 Treo.
I would like to see the price drop to the $200 to $300 price range - preferably $250 with ONE-YEAR contract (I'm not sure why two-year contracts caught on)

Two gigabyte flash memory

Or at least a flash memory port. I've seen 2gig SD cards for as cheap as $20 at Fry's Electronics. If I could drop one of those suckers in my iPhone then I'd call it done. I don't need a 30gig iPhone, I honestly don't need an eight gig (I have my iPod for that).
Give me enough memory to hold a playlist or two, and some ringtones - oh yeah, songs-as-ringtones support please. Leave some version of iTunes on there to play it all. I have a feeling people would be fine using iTunes to run music off their memory card.

Web

Honestly, they can't take web access off the phone because too many cheaper cell phones are web enabled. Hell, I had the internet on my Samsung SCH-3500 back in highschool, and while it was text based only and fairly slow... it worked.
I want to see the same near-full featured Internet they have on the full iPhone model.

MMS messaging

Again, a key phone feature Apple seemed to skip. This is another reason I was turned off to the first model. And you can't simply take away features that people are used to Apple! You're going to have to conform a little bit!

If Apple can cut out some of the fat of the original model, add a few (very common) cell phone features, and slice that price tag in half. I think they'd attract an entirely new market.
Follow up the iPhone release with a December/January iPhone II release and you're money.

Here's my vision:
iPhone Nano/Mini/slimmed down released this Fall. More of the common phone features, less the built in high memory iPod storage.

iPhone II release at MacWorld. Improving on the original. MMS, Chat, EvDO, WiFi, and increased battery life. Memory slot for additional memory, too. Go ahead and keep that price point if you must - because that'd be the all in one handheld everyone's waiting for.

Create a phone for the masses. And create one for the hardcore tech enthusiasts.

Come on Apple, you can do it.