It does sound like it could be marketing CYA to me though. Palm OS 5 is not very well regarded.
There is plenty of opportunity for Palm though. I was looking around at what new PDAs are going for; and while I find it hard to find a decent Windows Mobile/Pocket PC device for less that $300 or so, Palm still has two entries in the $100-$150 range. For casual use, the Z22 ain't bad. The display is not great, but it's cheap and does what it is intended to do.
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