Gruber adds that the company has told him there will likely be only minor changes to the final design, so the phone lost in a bar last week is likely the iPhone 4G/HD as we know it.
New to the "iPhone HD," are a front-facing camera for video conferencing, a better standard camera (including larger lens and flash), a Micro-SIM slot (just like the iPad), 960x640 resolution, a second mic, metallic exterior (not plastic) and split side buttons for volume.
The form factor is very different as well. The back is flat and not rounded, slightly smaller screen, a more "square" design all around with less wasted space, a larger battery, and smaller internal components.
Gray Powell, the designer who lost the phone, was one of a few developers that was given the prototype to test "real-world conditions."