Just when you thought Apple couldn’t do any worse that the iPhone, comes the rumor that they are planning to release a less functional version of the iPhone based on the iPod Nano.This rumor is based on a patent application Apple submitted on July 5th for a multi-function device with a circular touchpad control surface similar to the current Nano. Apple anticipates 10 million iPhones will be sold in 2008, that would be about 1% of the total cellular phone market. A less functional Nano version is speculated to help curb cannibalization of current iPod sales.I now have a question, since the iPhone doesn’t really do anything more than the current crop of smartphones using technologies from Blackberry and/or Microsoft, why would anyone want to