"Palm on Linux" would be something like Apple with Mac OS X ... built top-layer proprietary code on a proven underlying Linux code (well almost the same, Mac OS X is based on FreeBSD). Think about the possibilities (*dream*)! Mplayer for Palm OS for instance. The best open-source multimedia player compiled on your handheld. Think about all the networking capabilities. Run your mobile openssh server, use rdesktop to remotely connect to your windows xp stations, and and and... all for free
Let's hope this deal is going to happen!