I, having once been a 330 owner, and currently helping to maintain one for my girlfriend, really dislike seeing this announcement. However, HandEra's influence will remain in the innovation that they brought to market, and the trends they started. They brought the 330 to market with soft Graffiti and dual expansion slots, which seemed to pique users' interest in both.
What is even more disturbing than this announcement, though, is that they are getting out of the Palm OS business, not the handheld computing business entirely. I have heard it rumored that they are in the process of working on a PPC.