Apple has officially put the kybosh on any iPhone Nano rumors. The blog-o-sphere (I guess that counts us) got more than a little excited about the prospect of Nano phones being released for more casual users who aren’t looking for contract phones.

These rumors were started by a JP Morgan analyst who’s sources were revealed to be Gazoo and the Toothfairy. Those rumors caught fire and speculation went every which way and was relying on people who heard “stuff about stuff.”

However Timothy Cook, the Chief Operating Officer for Apple, made it clear that Apple had no interest in pursuing an iPhone Nano at this time. The focus of Apple according to Cook are developing the “world’s best phone” by pushing software and applications to the limits.

This does fit more into Apple’s progress into the mobile market as their Apps store is reaching new heights in sales and that is the driving force for most iPhone 3G users. If they were to create new devices as well this could impede developer’s progress as it makes it much more tricky to design software compatible with multiple devices with different screen sizes and input methods.

So this bloggers will say “oops” for getting caught up in the frenzy. But really, it was fun to dream wasn’t it?