Building off our previous post on the Apple Rumor Mill, the multi touch interface of the iPhone/iPod Touch has prompted one of the most interesting Apple Rumors to date heralding the return of the Newton. According to APPLE INSIDER, Cupertino may be currently developing a Newton 2 project with the goal of reinvigorating the comatose PDA market. This may be part be based on a comment that Steve Jobs made back in 2004 as part of the Wall Street Journal D: conference, where Jobs stated he was proud of not only the products Apple has released, but also those they haven’t, including an Apple PDA.

The Insider also goes on to state that they have it on good authority that a small team of engineers have been working on and off on the Newton 2 project – only taking breaks to help get out the iPhone. Now that development on the iPhone is largely put to bed, the Newton Deux is apparently a go again.

Specs are sketchy, but it appears that the Newton Touch PDA will be ultra thin, incorporating the mutil-touch interface, and be about 1.5 times the size of the iPhone to accommodate a 720×480 high-resolution display. It apparently runs the same mobile version of Mac OS X Leopard.

The rumor may also be referring to not a Newton, but the long in development Apple Tablet PC. Then again, Leo LaPorte stated recently on his radio show that Jobs is also notorious for leaking disinformation as a matter of testing his executives to see who’s leaking information and who’s staying mum.

Either way, the multitouch interface certainly can have applications outside of the iPhone/iPod. And that’s good news for the Mac Faithful.

Sources: Apple Insider/Engadget