Apple Phone Rumors Abound Before 2006 WWDC

Apple will hold the 2006 Worldwide Developers Conference (WWDC) this August 7-11 at San Francisco. Only a few days away, this conference has further fueled speculation on the Mac Phone; many insiders are hoping Apple CEO Steve Jobs will announce its official existence on his keynote address.
On a related note, Engadget Mobile has released an alleged picture of the unit. They are reasonably cautious:
"Hell, at this point the only mystery is why they're bothering to keep it such a secret, but so long as they're withholding it from the general public, we're going to be invariably baited into running possibly-photoshopped images of what could be ads depicting the device everyone's been waiting for."
One thing's for sure: A lot of people will be disappointed if Steve Jobs and Apple remain silent. And if the company is indeed sidestepping the mobile market to create "a home Wi-Fi phone", it will be received as bad news.
*Sigh*: Looks like the Mac Phone will stay in the shadows (source from Engadget).
Double *Sigh*: Maybe speculation about an Apple phone isn't new after all.