We remain dubious of the existence of an iPhone Nano, but case manufacturer XSKN has gone and taken things out of the concept renders stage we saw last week. It’s one thing to draw up some mockups based on rumors and put them on your site – even if it ends up not existing, you’ll get a sudden spike in traffic and whole bunch of Google Juice. But to actually put cases up for sale? That’s pretty risky, unless you’re real sure a product to fill those cases is on the way.

If it were anyone else, we’d laugh it off as a crazy business decision – but XSKN nailed out some details (the new shape of the back, for example) for the iPhone 3G weeks before it became official, and pulled the same trick with the 4th generation iPod Nano. You’d think Apple might consider not sharing things with XSKN anymore.

If it’s real, there are still two things we’re curious about:

• How are they handling app compatibility? Even if the resolution of both the fullsized and Nano screen turns out to be the same, Apps will need to be tweaked for usability.
• On a similar note of usability, what are they going to do with the onscreen keyboard? I already have a relatively tough time pecking away at the keyboard on the fullsized iPhone – I can’t even imagine typing on one half the size.

[Via MacRumors]