Check out a patent shot, published March 2006, that AppleInsider just found (thanks Jon!):
AI interviewed Shaw Wu, an American Technology Research analyst, and snagged plenty of quotes along the lines of how likely this device is, as well as the possibilities of this being a multi-functional device, switching between a phone, game player, PDA, GPS or even a remote control. Speaking of multi-function and patent ambiguity, however, we aren't finished yet.
This is yet another patent Engadget dug up, and this one was originally filed in April 26th of 2005, but published just yesterday, September 7th 2006. From the patent: "By way of example, the portable electronic device may correspond to tablet PCs, PDAs, media players (music, images, video), game players, telephones, cellular phones, mobile radios, cameras, GPS modules, remote controls, and/or the like."
So there you have it. What is 'it,' exactly? Who knows, maybe Apple's special event next week will be a multi-functional movie playing, GPS tracking, music listening, picture taking, game playing, thingamaPod (where's the 'homework doing' feature?). Or it could just be a big update to Front Row - we'll just have to wait.