I think Palm just can't keep up with the competition.
Look at the Foleo. Palm announced a rather nice device that was supposed to integrate with your smart phone. I'm sure there was a market for it. But then Asus announced the eee, which does more and cost less. The potential market for the Foleo evaporated. Palm's newest product was a generation behind not just the bleeding edge, but the mainstream!
Now we find out that Palm's next OS will not be released until the end of next year. I think this is the beginning of the death of Palm. Why?
My Prediction: By next fall, the hardware will have advanced enough that there will be multiple handheld devices running XP and or slightly modified common Linux distro. If you can buy a device that can run lots of Linux software, or lots of Windows software, why would you get a Palm device?
The opinions are my own, but I got the information here:
http://www.engadget.com/2007/07/02/p...ng-until-2008/
http://www.theregister.co.uk/2007/10/03/palm_os_delay/