Yes, the app store is about the only thing apple has going for them right now.
So the only thing Apple has going for them right now is a vastly bigger software library with much better software than is available for the Pre. That's not just software that is a bit better, but software that is far beyond anything you can get on the Pre.
The Pre would have been awesome if it had been released just one year ago (as the phone with which it is being compared was). But it's too late. The goalposts have already moved. It's all about the apps. Palm hasn't even got to the point of releasing a proper SDK for the Pre yet.
Once Palm manages a decent app store, Apple will shift the goalposts again. If a company wants to beat Apple, it is going to have to produce something completely new and revolutionary. I don't know what's wrong with these clowns to make them think that producing an iPhone clone is the way to go. That just puts you behind the curve.