$500 is indeed a bit too expensive, but it is a new high-end model after all. The price will surely come down in a few months.
PalmOne seems to be shifting to a more "high-end" pricing model. (The T|E2 is also a bit on the expensive side, considering that it is just an incremental upgrade.) It looks like they want to become like Apple and charge a premium price for their products. They are, after all, the only major vendor still producing PalmOS devices.
I do have to commend PalmOne for trying to create new markets for PDA-like devices. Marketing the LifeDrive as a "mobile media manager", rather than a high-end PDA, might turn out to be a stroke of genius. It's a pity that they still aren't using OS6, though.
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