I think you have a good point there, the 747-800 is alive and kicking and as far as I can tell the 797 is supposed to be a 737 replacement.
Seems like the rumour mill that supplied me is very much in overdrive and they are just hoping that this will become a reality in order to get contract rates up!!
But as the day has progressed I'm becoming more convinced that this comes from nothing.
Would be an interesting concept, would be interested to see what regular SLF would think to fly on it...where are the over wing exits? and no windows! would PAX be content to look at a screen showing exterior views?