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PalmOS will survive as long as Palm Inc. is around, and they are not going away anytime soon. They will stick to OS5 for the next few years and continue to customize it for their unique features. For example: NVFS and the HD in the Lifedrive.
I don't think PalmSource has much of a chance of surviving, OTOH. They are not the only player in the Linux field. By the time actual "PalmLinux" devices reach the hands of customers (at least 18 months from now, and probably twice as long as that), the space will have become very crowded. (Think Nokia.) And that is just assuming that the new OS will, indeed, be any good. The whole Cobalt fiasco doesn't inspire much confidence. Add to that the recent layoffs and things look very grim.
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