Those are very different illustrations. Either way, I think that this is nothing more than a rumor. A rotary dialing system? Even the thought of that seems insane. It's so old fashion that I wouldn't even begin to know how to work it. And there's no way it could be speedy.
I also find it very hard to believe that Apple would create such an innovative interface for their phone and then turn around and scrap it on the next release.
All this speculation rarely makes a difference. I remember looking at the conceptual ideas for the iPhone that people came up with before it was unveiled, and no one was really close. Apple has a way of releasing things that far surpass our expectations for them. I'll just wait patiently to be amazed.