Well David, it looks like the two of us are posting about this at a couple of different places. I agree that the Palm OS-based 700p (and even the current 650) should compare favorably to the WM5 700w. The big problem, though, is that the market and userbase is understandably confused about the Palm brand right now. Based on my observations on several online forums, even experienced Palm OS users seem to think that Palm has "abandoned its own OS" with their recent announcement of an upcoming WM5 Treo. How much damage has been done by the sale of the Palm name and the purchase of PalmSource by a foreign entity? Hard to say for sure...I guess we'll have to wait and see.
On the plus side, Treo 650's can be had for as little as $100 after contract rebates. Granted, that's online via treocentral's EarthLink partnership and with a 2-year contract, but if post-Thanksgiving prices at brick and mortar stores are similar, I don't think the average phone buyer looking to spend up to $100 is going to be concerned (or even aware) about the Palm OS supposedly being "dead."
Lastly, I'll add this...the January release date of the WM5 700w is rather unlike Palm. I never quite understood it myself, but Handspring (and then Palm) used to release new phones in time for post-Thanksgiving buying. Have they determined that the Xmas-buying public doesn't really buy lots of new phones at this time (which is what I've sort of thought myself for some time), or might this be an indication that they're a bit behind on getting the 700w out the door? And if that's the case, who's to blame? If my two-week trial of the PPC-6700 is any indication (coupled with recent comments by Dell Axim WM5 "upgraders"), WM5 isn't ready for primetime. I wouldn't be surprised if Palm and MS are scrambling to get WM5 working better in time for the big 700w release. But maybe I'm overthinking it.
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