Daring Fireball on 80 gig iPhone

John Gruber of Daring Fireball has chimed in on his 80 gig iPhone hypothesis:

(a) The demo screencast was recorded using a super-secret pre-production iPhone 2.0 with 80 GB hard drive; or (b) the original 4 and 8 GB iPhones are still so secret that the screencast was recorded using an 80 GB iPod hacked to resemble an iPhone in iTunes.

John thinks the later is possible. Someone emailed us and suggested that perhaps the iPhone has on the fly compression but we think thats would be kinda off the wall since most music and video is already compressed... not to mention if they can squeeze 80 gigs into 8 gigs that would be pretty incredible.