No, it doesn't exist, at least not yet. But the rumor mill is willing it to exist sooner rather than later. The first iTunes phone was a disaster, so why should I get excited about this vapor-phone?
Well, to be honest, I doubt if I would buy one as I already have an iPod Shuffle and a Motorola cell phone. The former has the inevitable Apple design - ease of use, simplicity, etc. The latter is a monster of complication. So if Apple were to produce a simple to use iPhone then I might consider it.
Cell phones are clearly designed for the younger members of society. Look at all the advertising hype, look at the major reasons cited for owning a 3G phone and you can see that older members of society are not counted as the main market. The menus which drive cell phones vary from make to make and model to model. Quite hopeless in many cases to even know how to end a call when borrowing someone else's cell phone!
So maybe Apple is on to a winner here. Time will tell.