To be honest, I HIGHLY doubt the rumours are true.

I don't think Apple will cut cost buy cutting off 1 of iPhones best feature which is the WiFi. How are they gonna compete with other PDA phones without WiFi?

And come to think about it, do you think Apple has such thing as cutting cost? If they do, Mac products wouldnt be at this price.

The only reason why I can think they wanna remove WiFi is coz of Installer/Cydia.

OR...

If the iPhone Nano rumour is true, it's probabbly another range of iPhone like how they categorize iPod video, iPod Nano, iPod Touch and so. iPhone Nano will be the lower range compare to the normal iPhones.