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Originally Posted by surur
If they own the OS they save that money.
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Not exactly. Not unless you believe Palm is really going to build this Linux OS from the ground up as opposed to licensing and building on a commercial Linux product. I consider that to be very unlikely since I don't believe Palm has the right personnel or experience anymore to design a system from whole cloth. It's hard enough to believe they're building a whole new application framework, much less an entire OS.
They'll be paying licensing fees to someone for this new Palm OS, if that's indeed what it is. I'm not saying you're wrong, I'm just saying it's not obvious yet that this is what's happening.
Also remember that in a pinch a thoughtfully designed "stop-gap" can sometimes work for a long time if you need it to. Exhibit A: Palm OS Garnet.