Poll
Question:
Yay or Nay?
Option 1: YES, AWESOME
votes: 0
Option 2:
Only in my dreams 
votes: 0
Option 3: Yeah, but that's retarded
votes: 2
Option 4: Hell no
votes: 2
Do you think it's going to happen?
It's starting to seem pretty likely to me, even though it sounds like a retarded idea.
http://www.engadget.com/2008/12/29/what-is-the-deal-with-the-iphone-nano/
Sure enough, check out the product list at http://www.vajacases.com/home/home_en.html
there's the iPhone Nano. baddood;
http://www.vajacases.com/images/mobile/apple/iphone_nano/form_en.html
It's not a shady website either, so.... yeah. :\
No
No, I don't see it happening.
Of course it will happen; Apple can't come up with extremely marketable new features like GPS and 3G every year, so there will be redesigns pretty soon I'm guessing.
I'm personally not very interested because I don't mind the size of the iPhone at all, and it's very comfortable, and I can't imagine how irritating smaller keyboard buttons in vertical-mode would be.