The device independence afforded by the SIM has been one of the chief advantages of GSM networks around the world over the past twenty years, and we'd hate to see Apple succeed in killing that off in favor of some sort of locked-up iTunes nonsense, but let's be honest: if anyone could pull off that kind of coup, it'd be Cupertino.
ENGADGET: Bloomberg: Apple working on 'cheaper, smaller' and dual-mode iPhones, trying to kill SIMs along the way