A 4GB iPhone 3G being sold at Wal-mart is either A) a genius idea by Apple that will happen soon, or B) (and more likely) a genius of an idea by someone with too much time on their hands that is trying to make news during a slow time of year.

Frankly, I hope its real, because I think it’s a great idea. The 4GB iPhone was discontinued early in its life cycle because people were upgrading to 8GB for only $100 more. Now we’re talking about doubling the price of the device to move up to that 8GB option – and it seems like much more of a bargain to go for the 4GB.

We’re also talking about a wider audience with the phone priced at $99. The Wal-mart target audience is all about the low price point – and a $99 iPhone would be a great way to get it into even more hands during these tough economic times.

It’s also as close as I think we’ll ever get to an “iPhone nano” that people like to talk about. There is very little chance, in my opinion, that Apple will ever release a scaled down version of the iPhone feature wise – but size is another issue entirely. It makes sense, and I think it would be a good move for the company.

Having said that — every one of these Wal-mart rumors thus far have turned out to be false. So don’t hold your breath just yet.