iMore has posted a summary of an interview with Tony Fadell, who was involved in the design of the iPod and the iPhone, in which he says that an early prototype of the iPhone included a hardware keyboard. In fact, he favored this approach. But when Steve Jobs saw a prototype of scrolling on a multitouch screen, he knew that was the direction that Apple wanted to go in. And the rest is history. Interestingly, Fadell eventually joined Palm and realized his vision of a phone that combines touch and a hardware keyboard in the Palm Pre.