iPhone Nano a no-no
In my opinion, this is a big no-no for Apple because of one thing: developers. When Apple first introduced the iPhone, Steve Jobs talked about the user interface saying that, with current smart phones at the time, “you can’t go in and add a button; they’ve already been shipped!” He went on to say that their interfaces couldn’t work because they weren’t changeable for each application. This is also the reason against the iPhone Nano, in a sense.
I read in a blog of a person who develops for normal smart phones who said that they have problems with people using their applications because of the different ways that smart phones are built, with different screen sizes, different buttons, etc. Since day 1 for the iPhone, this is what Apple has been trying to avoid.
By creating a smaller iPhone with a smaller screen, they completely go back on this. Not only that, but a smaller screen means less screen real estate, with less touchable content, and making it just a big mess for applications to function. So, while the prospect of an iPhone Nano would seem appealing, it doesn’t make sense simply because of the screen.

