The Register just published an article on this, and I think the author hit on two very salient points:
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PalmSource is also likely to take full advantage of Linux's strength in chipset and device support, the better to improve its OS' ability to offer wireless connectivity, such as Wi-Fi and Bluetooth, which if PalmOne and SanDisk's attempts to ship WLAN add-ons are anything to go by, currently need some improvement. Some Linux APIs will be exposed to PalmOS programmers.
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Quote:
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PalmSource will clearly pitch the result as a more open alternative to Symbian and Microsoft's phone operating systems. But it may also improve PalmSource's ability to attract handset makers looking for a less complex operating system than those that typically power smart phones. Not only Symbian and Windows Mobile, but the Palm OS too is generally seen as unsuitable for low-end, low-resource devices. So far only a small percentage of the world's mobile phones fall into the 'smart' category.
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I think the answer is: Despite our recent depression, don't sell your palmOne stock just yet.