Good business sense from Cisco... hold out for a better deal.
They knew Apple wanted the name, so they started using it for their VOIP phones. Hold off on renting the name to Apple till after the keynote and they can't lose. If the iphone flops, they get fees, if the iphone is a hit, they've got Apple over a barrel and can demand higher fees.
They have to file the case - if they don't they can lose the trademark according to US trademark law.
Agreed... see my post #2.
I think that Apple sees the value in the hype around "iPhone", afterall its been around in the rumours since about 2001. The branding is literally building itself.