“According to a previously reliable source, Apple misrepresented the reasons behind MacWorld and Jobs’ keynote cancellation,” Jesus Diaz reports for Gizmodo. “The real cause is his rapidly declining health. In fact, it may be even worse than we ever imagined:”

Steves health is rapidly declining. Apple is choosing to remove the hype factor strategically vs letting the hype destroy apple when the inevitable news comes later this spring.

This strategic loss will be less of a bang with investors. This is why MacWorld is a no-go anymore. No more Steve means no more hype. Saying they are no longer needing [MacWorld] is the cover designed by the worldwide “loyalty” department.

Diaz reports, “This source has repeatedly been 100% correct before. Those times, however, were always related to news and images of unreleased Apple products. I can only hope that, in this more personal matter, it is absolutely wrong and this just means that Steve Jobs is retiring according to his plan.”

Full article here.

MacDailyNews Take: “I can tell you that sources inside the company tell me that Jobs’ decision was more about politics than his pancreas. Sources tell me that if Jobs for some reason was unable to perform any of his responsibilities as CEO because of health reasons, which would include the Macworld keynote, I should ‘rest assured that the board would let me know.'” – Jim Goldman, CNBC, December 16, 2008

MacDailyNews Note: Barron’s has picked up the Gizmodo rumor report here.

[Thanks to MacDailyNews Reader “RadDoc” for the heads up.]