Perhaps the most convincing part of this bit of insider info is the precedent set by a previous collaboration between the two companies regarding feature phones. Those devices weren’t Facebook-branded but still had a deep integration with the social network. Facebook hasn’t flat out denied that they are working with the company currently either.
The biggest caveat arrises in that there is still a good chance the phone won’t actually be called the “Facebook Phone” or FacePhone or PhoneBook or whatever. Really all we can know for certain is that these INQ devices might get better Facebook support than what is currently available via the official Android app.
And all of this begs the question: is one social network really a sturdy enough platform to build an entire mobile experience around? Granted, Facebook has become deeply integrated into the web (just check out the like button on this very page as an example), but can it provide a rich enough experience to really convince people they need a phone based around the service? The answer to that question may reveal the truth about whether or not we ever see a Facebook phone. But then again, it may not.