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It's been a sad period for HP lately with the various mismanagement, and for a company with a history of some great innovation they just haven't been all that interesting of late. I personally feel this is the right move for now until they are certain of their next step. The uncertainty of their pre-announcement was not helpful, nor did it feel like the dynamics of such a move had really been well thought out.
The whole Palm/webOS story is all a little sad though. I've never played with webOS myself, but from all reports it had some nice ideas and a decent framework for developing applications. It will be interesting to see what they do with it now.
.. but then I also thought Meego looked interesting, and those who played with the Nokia N9 seemed to report that it also was a nice little OS, but I guess when you do the maths the notion of trying to develop a whole ecosystem around a platform when you now have some established parties (with deep pockets) does make it a tough sell.
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