Agreed on all your points. Given that this rumor has been around since last year, I'm inclined to think of the iPhone Lite as a contingency plan and/or leverage

Agreed on all your points. Given that this rumor has been around since last year, I'm inclined to think of the iPhone Lite as a contingency plan and/or leverage for negotiations with AT&T and Verizon. Revealed properly, a gun doesn't have to leave its holster to be effective.