This is what Samsung was considering putting to market in the summer of 2006, six months before the unveiling of the iPhone.
One of these phones (the bottom-right one) became the Samsung F700 - a product Apple once included as an infringing product, but later withdrew once it learned Samsung created it and brought it to market before the iPhone
It extends to more than just the hardware - Samsung was also working on interfaces that looks remarkably like iOS (actually, that look remarkably like PalmOS) - in the summer and fall of 2006. Again, before the iPhone was released.
So it seems that all those debunkers debunking this photo were full of it