Thing about memory is that it's so cheap. But you can then look at this two ways... Why didn't Palm put in more (very cheap - especially in bulk) flash memory? Or... Why can't you just go buy an SD card to make up for that lack? I'll leave it up to each person to take it whichever way they wish.
Wifi, sure, a bit of an issue... but I think the problem may not be Palm, but the fact that no carriers would want a phone with full-featured wifi in it, as it would cut into their ability to gouge on data plans.
(Begin minirant. Why can't Palm define a Content-Type encoding? UTF-8, ISO-8859-1, SOMETHING, so any browser set to default to an encoding other than ISO-8859-1 handles their pages properly! Bloody little question marks that show up since I use UTF-8 for... Everything, by default. End minirant.)