Us internet-dwellers love nothing more than a good rumour. The less substantiated the better, in my experience.
This Googlephone is the perfect rumour - there are a few sketchy photos, all suggesting a different form factor, a few different suspected partners, none of whom will confirm or deny, and then there's the debate as to whether Google would actually benefit from moving into the mobile phone business - a notoriously tough industry to conquer.
So far, some poor Google employee in Spain seems to have let slip that there may be a phone in the future. The rumour is that it's going to be designed to work much like a Blackberry, but excel in Google's own personal specialism, mainly the internet. This has many people feeling skeptical, since many handset manufacturers currently have deals with Google to ship their products preloaded with Google goodies. There's also the argument that Google is well known for encouraging their engineers and developers to experiment, and this could be one of the many projects which will never see the light of day.
Still, if you're intrigued, check out the pictures over at Gizmodo and Engadget.