Rumors are that it will be the HTC Passion, which is supposedly powered by a 1GHz Snapdragon chipset (the Passion might also be called the Dragon). The rumor mill (from Boy Genius, Phone Arena, and elsewhere) claims that the HTC Passion will feature a 5-megapixel camera, a large WVGA-resolution screen with multitouch, a 3.5mm headset jack, 256MB RAM, and it's said to run Android 2.0 with the HTC Sense overlay.
We have heard nothing about this through official channels, so this is strictly rumor territory here, but we can't help but be intrigued by this mythical phone. The Android 2.0 with multitouch and the Snapdragon processor certainly puts it just a notch above the Droid. Perhaps that's why Verizon is keeping mum about the device for now. Still, the rumor mill claims we'll see an announcement about the Passion/Dragon in mid-December, so we'll definitely keep an eye for that.