Forbes is reporting that the new iTunes phone will only hold 25 songs.
the person who has seen the handset says the phone's software appears to artificially cap song storage at 25 songs, regardless of how much memory the phone has.
The full story is here.
For myself, my Audiovox SMT 5600 MS Smartphone has a 1gig mini SD card in it. I'm carrying about 300 songs in less than 300 megs of space with WMA, and I'm not bound to iTunes or purchasing from a carrier. However, it won't take long for someone to hack that limit if it artificially limited. What a dumb idea.