The original report was based on information from a Foxconn employee who claims to have seen numerous sample of the next generation device.
Here's what Gruber had to say:
We received word from a reliable source at Foxconn in China that the iPhone 5, as it is currently being called, is now gearing for production.
No it's not.
No teardrop-shaped devices, as rumored in the lead up to the iPhone 4S. Samples so far have been symmetrical in thickness (also longer/wider).
Longer and wider? Sounds like bullshit. I can see Apple putting a bigger display on a device of the same size. I can't see them making a bigger device.
Gruber is generally considered one of the most accurate sources when it comes to inside Apple information.