Palm has several things still going for it still. The biggest being 3rd party app support. This is something that Apple really does need to push over the next year. If they don't all we have here is an expensive, closed smart phone.
However as I said before I'm not overly concerned right now since there is almost half a year until the *Phone comes out. In typical Apple fashion they are taking things slow and steady. Nothing wrong with that approach. It just drives some people insane in a world of I WANT IT NOW! NOW NOW NOW!
I personally think the people in the linked article are short shighted, I don't think they know what Vapourware is and its unlikely Palm is going to catch up in 6 months. It will have to remove all its buttons at least to get anywhere on the right road, how much Q and A testing does that take?
iPhone is going to overtake Palm like a gale force blowing over a daffodil. I want one and I told my PC friend last night and my room mate and they watched the demo... they are both getting one as well and we both do not have smart phones to begin with, Palm has never had our business so they are clearly doing something wrong.
Those two guys are still debating usability between the iPhone and a Treo... lame.