Is this Apple's iPhone Nano that will be Announced at Macworld 2009?

The rumors of the iPhone Nano is back and this time with the photo of the iPhone Nano case.
iDealsChina who has published the information and rendering of the iPhone Nano case manufactured by a Chinese case manufacturer, XSKN claims that the product will be announced at Macworld San Francisco 2009

The Chinese case manufacturer, XSKN are the same folks who had leaked the photos of Apple's iPhone 3G case with a curved back before it was launched.

iDealsChina has provided few details about iPhone Nano's specification to back up it claims.
They claim that the new iPhone Nano will be of the same height as iPod Nano and will include "3 sensors, camera, [and a] mirror screen but no 3G."
Though I have always maintained that Apple needs to expand its offering to be a serious player in the mobile space, it seems unlikely that Apple would release an iPhone Nano which would look like the one shown in the photo above.
Here are some of the reasons why I think its unlikely:

• The so-called iPhone Nano's screen is too small to use iPhone's virtual keyboard.
• It is unlikely that Apple would trust a vendor who had leaked the photos of the iPhone 3G case to give them details of their upcoming product.
• The smaller screen will have issues for iPhone apps that are currently developed for iPhone's 3.5 inch screen.
  

But, it is finally good to see some activity on the rumors leading up to Macworld San Francisco 2009.

This is not the first iPhone Nano rumor, we had got a glimpse of the so-called iPhone Nano UI last year.

What do you think about the latest news about iPhone Nano? Any reason which makes you believe that this is a rumor or photo of the new iPhone Nano?