So Palm gives Apple free advertising and directs users of their devices to iTunes where Apple stands to make more profits and have a more dominate Music Store and Apple purposely blocks them? This is just dumb and makes me wonder why I bought an iPhone.
This would be like a city building a sports stadium and then not allowing out of city people to purchase tickets to games because they don't pay taxes in their city, never mind the fact that the person will be spending money on the tickets as well as concessions. To prevent this they check your drivers license at the stadium blocking you from getting in if your from out of town.
Why should Palm have to make a new music store? That isn't their business. I'm glad companies like IBM are out there and actively work with their competitors to make their competitors products compatible with their own because they know in the long run it makes them look good as well as they are still bringing in revenue for whatever IBM product is required by a competitor's product.
Apple (supposedly)doesn't make money from iTunes. iTunes sells iPods. The ease of use of iTunes is a selling point for them. So if other devices can directly sync to iTunes that undermines the whole reason Apple continues to support it. That is why Apple is so protective.
Palm can't easily create their own iTunes like program. iTunes relys on deals with the record companies, so it isn't as simple as righting a software program. There are a few others out there, but they date back to before iTunes, or at least about the same time. I doubt if anyone could secure enough content to start another online music store in our current market.
A friend of mine recently bought a cheap <$50 mp3 player that synced to Rhapsody. If Rhapsody cleaned up the interface and made it braindead to use Apple could have some competition. As is, figureing out how to buy something and then get it on the mp3 player was a chore. Which brings up my first point. Apple uses iTunes to sell iPods. If any mp3 player could sync to it then couldn't charge the premium. They will not allow that to be taken away.