I saw this Neonode N2 phone cross by in my RSS reader, and it looks like it could practically be the iPhone Nano. After reading the review at pencomputing.com it's clearly not, but the N2 is absolutely tiny. It's also built off a touchscreen interface, though the N2's is built off infrared instead of multitouch. The weirdest thing is that the Neonode N2 and N1 have been using iphone touch, tap, and swipe interfaces since 2002 -- they've been around a while.
The other weirdest thing about the N2 is that it's built off Windows CE, just like Windows Mobile, except the N2 doesn't add all of the Windows Mobile interface, they just use the bare guts of CE and add their own pretty. I have to say, it looks pretty decent from the few screenshots.
I'm not going to say that it's going to sell like hotcakes, because it probably won't. It costs about $645 US, doesn't do 3rd party apps, doesn't even do EDGE, and does only 1 GB of storage. They use a mobile processor I've never heard of on its own boffo architecture, so converting apps over isn't necessarily going to be a slice of pie or a walk in the park. I just figured it's kind of interesting. I wonder how well they patented their stuff and if we'll see yet another iPhone lawsuit.