One of the biggest arguments in the Windows Mobile world is whether Microsoft will ever build its own phone. We've repeatedly heard a resounding "NO!" from MS execs, but we've heard execs deny things before, only to do that exact thing later. (We're looking at you, Apple.) That said, we are still expecting to see the Zune creep into Windows Mobile.

And with that we turn to a brief Wall Street Journal story [via Engadget and BGR] in which Microsoft is rumored to be in talks with Verizon to launch a multimedia-focused touchscreen phone early next year to compete with the iPhone, if/when it actually comes to Verizon. And the the phone to do that is rumored to be none other than the fabled "Pink" project.

Microsoft's project, which is code-named "Pink," is aiming to produce a phone that extends the tech giant's Windows Mobile cellphone operating system, adding new software capabilities. It would also likely include Microsoft's new Windows Marketplace for Mobile, a mobile application store along the lines of Apple's, these people say.

Who "these people" are we have no idea, and the WSJ ain't sayin'. But, heck, we can tell you that any MS phone would have Marketplace access. That's a given. As for it being "along the lines of Apple's" App Store, we'll have to wait and see. Unless you mean that they both sell apps.

So for now, we'll put it to you. Should Microsoft attempt to take on the iPhone head-to-head? Or do you think this is all just another unsubstantiated rumor?