iPhone nano. Think small.
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For this contest, it seemed a little too easy just to take an iPhone and shrink it down, even though aesthetically, that's probably what Apple will do to keep a family look to the iPhone line. Just for fun, I decided to lend my concept a smattering of visual cues from other Apple products, including the 1st gen iPod nano and the new iMac.
I would see this product having the same basic functionality as the iPhone, but with a capacity cap at 8 gigabytes, and without the iPhone's camera or internal speaker, for the sake of compactness. The iPhone nano makes use of a more modestly sized 2.5" widescreen display. Slightly larger than the 2nd generation iPod nano in all dimensions, the product would be eminently pocketable.
I guess this is the iPhone I would want...