iPhone nano rumor gains more traction with XSKN case availability

As we approach CES and Macworld Expo in January, the rumors of what we may see announced start to fly around. A couple weeks ago, Jason posted about the rumor of the iPhone nano. Today, Gear Live posted some more indications that the iPhone nano may be an actual device thanks to a case maker. XSKN revealed the iPhone 3G last year and it looks like they may have jumped the gun on the iPhone nano as well. You can actually order one of these cases (there are several color variations) for US$24.95.

The iPhone nano would supposedly by a cheaper alternative to the iPhone, but with refurbs priced at US$99 I have to wonder if there is really a need for a smaller iPhone device. I think the on-screen keyboard experience would also be a bit challenging given the smaller form factor and display size. The iPhone and iPhone 3G are already quite slim devices that feel good in your hand.