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Apple prepping a 32GB iPhone update, bringing back at-home activation?

We're not particularly inclined to believe them, but the whispers that Apple is about to bump the top-end iPhone capacity to 32GB are getting harder to ignore -- especially since 8GB inventory is drying up, leading to speculation that's it's going to be dropped as soon as next week. We think the timing's a little odd on the heels of the Let's Rock iPod refresh, but considering the rampant speculation that Apple was forced to bump the nano to 16GB and drop the "limited edition" 4GB model entirely at the last minute in response to the new Zune lineup we suppose it makes competitive sense. AppleInsider also says customers will once again get the option to activate in-home, but we haven't heard anything about that -- we'll see what happens in the next few days.

[Thanks, Harry]