I think that for the time being, a 32gb iphone is plausible, but overall the price would be ridiculous. They would definitely have to step up to 16gb chips, and putting two in the same phone would get rather pricey. I mean, the 32gb ipod touch is already $499. Add in the radios necessary for the iphone, and you're probably looking at a $800 or $900 phone. And then with the subsidy, it might come down to $600. I think that's just too much to pay for a subsidized phone. Maybe when the 16gb chips get cheaper (and they will), it will be more likely. Perhaps we're looking at somewhere in 2009, but by then we'll all be talking about iPhone 3.0 anyway, right?