Next iPhone to be split into two models?

You want another new iPhones rumour? You got it! The latest analyst-fuelled speculation concerns Apple's strategy to split the iPhone into two devices: one all-singing high-end handset, and one low-end bare-essentials effort.
The rumour stems from a file within the recent 3.0 SDK that references two new units the iPhone 2, 1 and the iPhone 3, 1 (the current iPhone 3G is known as the iPhone 1, 2).
According to VentureBeat, a report from Lazard Capital Markets analyst Daniel Amir claims that, in addition to the fully featured iPhone well be receiving in the West (presumably iPhone 3, 1), a simplified unit (iPhone 2, 1) will be produced for the likes of China, India and Russia.
Its suggested that this low-end unit would be more compact and would lack the long-mooted video recording features of the high-end unit.
Its also been suggested that this new low-end unit would lack Wi-Fi capabilities, in order to squeak it past the Chinese government's regulations on what devices can and can't be sold there.