Although they continue to deny it, the Google Phone might yet be a possibility. There's too much going on behind the scenes. They're clearly up to something. Just yesterday, Google said that they are actually going to participate in the 700MHz spectrum auction, which would give them the ability to build their own cellular network with long reaching data connection possibilities. On top of that, I just read that Google has invested quite a bit of money into a company that is researching and producing femtocells, a technology that companies can put in buildings to improve cellphone reception.
Anyone else connecting the dots here? Imagine...within a couple years, we could see the emergence of the fabled Google Phone that runs on Google's own network. No partnering with AT&T like the iPhone...this would be Google all the way around. And it would probably be free (or at least really cheap) due to being ad supported...which Google is already working on.
This next few years is going to be very exciting. We're going to see something big happen...we just don't know exactly what yet. :-)