Will this be the new "Facebook Phone"?

This whole Facebook Phone thing just keeps getting weirder and weirder.

Techcrunch broke the story about the project. Then Facebook PR officially denied it, saying the story was “not accurate.” Naturally, they were arguing semantics, as suspected, and other reports about such a project quickly followed. This led to a sit down with CEO Mark Zuckerberg, during which he acknowledged that the leak was “probably accurate.”