UPDATE: Ryan Block returns to Engadget to smash this rumor:

The Wall Street Journal is reporting, almost off-handedly, that Apple is planning to attend CES 2010, a trade show it has avoided up until now, and arguably eclipsed in 2007 when it announced the original iPhone at the then similarly timed Macworld Expo.

Apple pulled out of future Macworlds, causing the expo to change focus and time slots for 2010, but the idea of Apple actually showing up at CES instead? To quoth Dieter: Cats and dogs -- living together!

The meat of the WSJ's story is actually that Steve Jobs has been invited to Keynote at CES but isn't returning their phone calls. While Jobs owned the spotlight at Macworld before handing the final show over to Phil Schiller in 2009, Jobs would be one of several Keynotes at CES, including lovable competitor Steve Ballmer of Microsoft.

Would Jobs settle for "one of"? Would Apple, after leaving Macworld and saying they prefer to set their own schedule for special events, and that they reach more people via the Apple Stores every week anyway, really want to return to almost exactly the same formula with CES?

We doubted it, and still don't believe what our eyes are reading.