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From the ads that I've seen. It seems like HP is trying to make their products unique and artistic like they're trying to distance themselves from when they purchased Compaq and you know how that went. I also feel that with the intense competition from Apple, this purchase kind of makes sense...
Palm has always had good hardware [sometimes made by HTC]. The Palm OS phones were always good, the Windows Mobile ones that they started making weren't so great. I have a feeling they are takeover bait, a company with a good product and some innovation which has money issues.