To further emphasize why surfacing reports of the Apple iPhone 2 are restatements of the obvious, check out this recently approved Apple patent that Macintouch dug up. Take a read-through – it's a cell phone, it's a digital media player, it's totally the iPhone, why, check this quote:
OK, so it's actually totally boring. It does reveal that Apple has worked on cell phone hybrids, and they have filed patents about it. And get this – the patent was filed in July 2004. Wait, Apple was working on the iPhone two and a half years ago? Does this mean that they're working on a second iPhone now? No, it means that development is a long and iterative process. Shocking, all of it.