Jon Gales over at MobileTracker reports that Reuters got it *really* wrong when they wrote about the Motorala E1060 being the iTunes phone. Even though Moto demonstrated iTunes near this phone, this phone is not in fact the phone that will play iTunes music.
I think this is very telling. Apple is keeping tighter control than most of us thought and not just "licensing and forgetting" about their format. This makes perfect sense - Apple is known for keeping tight control over their technology. And Apple is known for their slick user interfaces and friendy designs, and Motorola is known for it's complex devices and completely user-hostile UIs, so they'd be insane to just let Moto take iTunes and run with it.
I guess we've got a surprise or two waiting in this area still... let the iPhone rumors continue!