As expected, Apple will be making cheap iPhones for everybody. The look is iPod derived, wherein the click wheel is used instead of a keypad or a touch screen to navigate the interface. The most interesting innovation is the rotary interface.
The new iPhone is probably going to be Nano size, and based on the fact that this is a recent filing, we may have to wait till iPhone Third-Gen before we can see how it feels in our hands.
For now, we can only dream about this iPhone concept, gleaning a few things like the iPod design never going out of style yet, and isn't the Nano one of the greatest gadgets ever built, as far as form factor is concerned?