A report tonight from Engadget is apparently confirming the re-emergence of the ill-fated Kin One and Kin Two phones on Verizon, with an altered data plan, but still with Zune Pass functionality:

…we’re hearing that the revised phones will be totally, completely debundled from data services. Data-centric features like the Loop "are out," we’re told — but the good news is that you’ll still be able to use one of the product’s most redeeming qualities, Zune Pass, over WiFi if you’re not signed up for a proper data plan.

Whether or not this is just a ploy to unload inventory, or whether Verizon finally came to it’s senses and realized that a required $80-100/mo data plan was a little…steep for a teen phone, or even whether Verizon might be trying to play nice with Microsoft in order to get in on Windows Phones, this is certainly an unexpected turn of events.