Well it looks like yes indeed the iPhone 4G is real. Apple sent a message to Gizmodo to have the device back, and they did give it back. However the damage is done. Per reports Gizmodo bought a iPhone 4G prototype that was left at a bar, but someone who lost it. The phone was not functioning due to Apples remove wipe feature of Mobile Me. Apple is obviously not happy at Gizmodo since it breaks a trade secret law (not just Apples).

If Apple ends up suing Gizmodo for damages it can surely be in the millions. In that case Gizmodo would be forced into closing down. Everyone else who broke the news (Including Engadget) are completely safe from this. It’s unfortunate that a news organization would spend money to break laws, just for page views. Then again magazines do it all the time. Spoiling a major Apple event is a bummer and I am sure Apple is furious. The Apple employee who forgot it there still has his job (for now).

Softpedia has a list of what is known new features (spoiler).

There has been a lot of hype or rather news about the 4th generation being left at a bar ~14km from Apples headquarters. CNET, Engadget (who first broke the news), TheAppleBlog, Gizmodo, and PCWorld are reporting news on the supposed leak.

I say supposed leak because if it is a prototype (or near release) version if the iPhone “4G” Apple would have wiped the phone of data (Engadget says it doesn’t work), and gone to go get it. But Apple has naturally not responded to the case.

IF the rumors are true there are changes like a front facing camera, its more slender, more block shaped (like the iPad) and other changes.

We will find out in June if this was fake, real, or was purely done for hype.