One of the discouraging aspects of the iPhone hold true for any mobile device - limited screen space. That may soon change.

Rumor has it that Apple will use the Intel Atom processor in a future version of the iPhone. But the catch is, it won't be a replacement for the iPhone, but an "addition." ZDNet reports on Intel Germany CEO Hannes Schwaderer: 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.

Rumors (and these are all rumors) suggest that the PDA-style and Internet connected device would be about 1.5X the size of the current iPhone. The question remains, would you rather carry around a small phone and a Internet-savvy device, or one device that does both, even with its limited screen space?

Below is a mock-up created as an entry for a Gizmodo contest.