Thanks Rede. I hadn't seen that version but both the anthropology and John Hawks blogs have articles on the two fossils. They provide a different perspective. Scroll down to the"man bites dog" article in the first one:

http://johnhawks.net/weblog/

http://anthropology.net/2007/08/08/the-ilert-fossils/

And this guy really gets stuck in:

http://scienceblogs.com/afarensis/2007/08/09/the_ileret_skulls_my_two_cents/

Seem likely to me that H. erectus evolved outside Africa from a H. habilis (whatever that species is, it varies considerably) and then moved back into Africa. Over time these two species interbred and produced the hand-axe.