Yeah, good points. I think they can make the screen a bit smaller than the current iPhone, but keep the 320x480 resolution. This way apps will still be usable. But they can also remove space from the top and bottom of the phone and make it a lot thinner. Overall, I think they can really shrink the iPhone significantly. This could appeal to lots of people. Especially, now the iPad is out and people don't mind having a smaller iPhone to compliment their iPad.