File this one under rumor, with contradictions
The above image comes to us from XDA.cn, which in fairness, does get a high amount of accurate leaks--well, they get it right some of the time. The above rendering is of the supposed HTC Ignite, a device rumored for a mid-2011 release. As Pocketnow notes, the HTC Ignite is also listed on UK etailer King of Gadgets, so the name may be in use by HTC after all (although to be honest, it sounds like Android for some reason).
The contradictions come into play with the specs: resistive screen and an 800MHz processor? Umm, no. And there's no evidence to suggest that Microsoft is downgrading the chassis requirements. It's not Chassis 2, which are front-qwerty devices with a different resolution and not coming anytime soon, so something is not correct there.
Still, forget all of that: we like this image and HTC should make this design 'cause it's slick as all heck. Reminds a bit of the Nexus S.