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Hey, maybe that's why the full-screen iPod was a no-show last month. It makes sense if Apple integrated a phone in the high-end iPod.
Another coup, if they do decide to do an iPhone, is to support open network support. In Europe and Asia, people actually buy phones separate from the network contract.
In that way, people can just move their SIM cards to the iPhone without breaking their existing contract.
And with all the other kewl iPod features, people wouldn't think twice to shell out the moolah to do so.