For the last few months, a rumor that Apple would release two devices this year went around, and to be honest, it seemed to make lots of sense. Apple would release a full-featured iPhone, selling it at the normal full price. The company would also release a watered down version of the iPhone 4 aimed at taking a stab at the prepaid market.
I thought this to be highly believable. If you've ever been to Asia or Africa (I have), you'll know that the prepaid market there is gigantic. This is an untapped market for Apple.
So the rumor mill went crazy on this rumor, and everyone, at some point or the other, seemed to agree we'd see two iPhones this year. John Paczkowski of AllThingsD now thinks otherwise...