Why do you say that?
Well, like I said, I'm not sure, but the iPhone did cost $600. I don't think any of its components are very expensive except the touchscreen?
Also, don't you think that if they could use multitouch, they would? But looking at recent rumours and things it looks like the iPhone nano is going to be using a Click Wheel instead. Maybe because a multitouch screen would be too expensive and wouldn't be justified in a simple device like this one, if you could just pay an extra $100 to cover the extra cost it takes for Apple to make a full-fledged iPhone. The multitouch screen is the most attractive feature of the iPhone, and it seems that Apple has chosen to omit it in the iPhone nano. I can only imagine one reason...
And cleanup, i Really like your mockup, really nice work!
Thanks! Yours is nice too. Looks better than the iPhone itself IMO.