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I think the problem was either the new software or the manufacturing.
In reverse order. We can easily grant that Palm can design great hardware. What happens is that not all great designs work when converted to mass production. Perhaps there was a problem in the early samples that they could not overcome or the manufactuing process was going to cost more than the market could afford.
The new software platform is a more likely reason for the product killing. Perhaps it was too slow (and a faster CPU would make the unit too hot.) Most likely it was a dead end system that could not integrate to their main line platform. Palm is too small of a company to support two core systems that divergent.
I think that they will take the lessons learned and fold these back into their main line products.
At least the killer product didn't kill Palm. (Yet.)
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