No sooner do we mention how Apple may need to ramp up iPhone 3.0 in response to the Palm Pre, than we find this little gem via ZDNet (which MacRumors is backing up):

iPhone 3.0 will support Quad-Core Processors.

Yeah, we fell off our chairs as well. But Apple did buy chip designers PA Semi and license both ARM and PowerVR, so the chips could very well be what we get the next time Apple (hopefully Steve Jobs!) takes the stage and pulls an iPhone from his pocket.

As ZDNet rightly points out, the current iPhone already rivals dedicated gaming portables in power, imagine that gone Quad-Core (would make for a nifty iPhone HD as well, now wouldn't it?)