The CEO of Intel Germany, Hannes Schwaderer, apparently confirmed that a larger iPhone (or a mini-tablet) is coming soon. The quote from MacRumors:

As part of an Intel event for the 40th birthday of the semiconductor company at Munich’s BMW World, Germany managing director Hannes Schwaderer confirmed today what has long been a rumor on the Internet: namely, that there is an iPhone with Intel’s new Atom chip. The device is slightly larger than the current version, Schwaderer said. That is not, however, because of the Intel chip, but because of the larger display used in the new iPhone.

Personally, I’d rather see a larger version of the iPhone. The problem with most mini-tablets is that they require a wifi connection. If this was a phone, I could use bluetooth for phone calls, but still have 3G internet anywhere I went.

If this is true, this might be the 720×480 device rumored to be coming out at WWDC08.