My guess is the blogosphere will be complaining that it doesn't cure cancer but as I noted in the iPhone 4S thread, its an evolutionary product with a faster processor, better battery life and a new OS for the same price.
I'm just getting around to watching the actual keynote and something Tim Cook said strikes me as proof that Apple is not thinking about doing a stripped down version of an iPhone, otherwise known as an 'iPhone nano.' Most rumours peg this 'iPhone nano' as being a smaller, low-cost handset that competes in the budget feature phone category. Here is what Tim Cook had to say when talking about iPhone market share as compared to the whole handset market.
The iPhone has 5% share of the world wide market of handsets. I could have shown you a much larger number if I'd just shown you smartphones but that's not how we look at it. We look at the entire market of handsets because we believe, over time, that all handsets become smartphones.
In other words, Apple isn't thinking about a class of handsets that, over time, will not exist anymore. They plan to grow with the market that, over time, will only consist of smartphones. Now, that's not to say that they won't come out with a couple of classes of smartphones but this notion that they are going to get into the cheap feature phone category to gain market share is nonsense. I think it's time we put that rumour to bed don't you think?
When you think about it, apple already has a strip red down iPhone. Several in fact - they are called the 3GS and iPhone 4. These products are still available and could be considered the low and mid range phones.