Don't discount them yet!
Thinking aloud is good. It stirs things to view unless you're in a crowded bus that is!
We still don't know what good this device is at this point. Third party has not had a word in yet. And we still have to put paw to the machine.
What I'd say now in retrospect is that we have been graced with the Iliad or should I say spoiled. The Iliad is a wonderful mobile computer that has not quite yet reached its potential. We have seen it grow and stumble and grow again. If the Foleo had appeared before, we would have embraced it at first sight. How can Palm have not studied the Iliad and take fruit from its evolution? A product such as the Foleo must have been in the works for at least three years, Palm could not have foreseen the Iliad, but they would have had time to tweak the Foleo up to par!
I sense too that in the Foleo/Treo duo, Palm, as Sony/Connect, have been looking for an Apple iPod/iTunes type blockbuster.
Again, time will tell.