As one who has written more than 15K words on the Psion, I concur.
Okay, I get you. You got me when you mentioned 15,000 words, total, on a Psion. 15,000 words is no more than two weeks worth of work for me. Then I use iTunes and iPhoto, because I can, but if those things weren't available on my MacBook, I'd use CDs and film.
I've mistaken myself as a potential customer for this device because it has a keyboard. But it's not meant for me because the nature of my work is intensive revisitation of long to very long documents of straight text. I'm not at all the the market for this product. Rather this is for people who do a little here, a little there, but a tricked-out mobile phone is too unwieldy to efficiently do those thing. This is for the corporate worker often out of the office, often required to edit contracts, return e-mail, update spreadsheets, or the like, while out of the office. These tiny PCs are $1,200; this Palm Foleo is $500 -- the tiny PCs do more but the users don't *need* more. My MacBook is better for what I do, but what I do is nothing like what, say, a regional sales manager does. My original work can be slow and ponderous some days, a lot of chin-in-hand behavior; every day, his work is a quick recalculation here, a fast contract modification here, snappy answer to this e-mail, change this meeting appointment, e-mail everyone to let them know the meeting has changed, on the Web look up for his wife the phone number of the hotel where he'll stay tomorrow night in Cleveland, etc.
Taking that into consideration, I rescind my previous naysaying about the Foleo. It will appeal to a certain heavily mobile company worker. This is the same thing I said about the iPhone, although I believe it will sell more into the consumer market, too, at least at first -- even at those prices -- because of the panache Apple has in the gadget-centric younger demographic. Being an iPod and Apple TV owner, and a Mac user since the 1980s, I have it into my head that every gadget or new technology that comes out must have a very broad reach into the consumer market. That's of course a false perception. Each market has its own needs and uses. If you gave me a typewriter, I'd put on my desk and use it, at least for some things, a lot more than typing envelopes; but must of you would laugh and hand a typewriter right back.