Sorry but I think you are completely wrong.
Look at Apple. Incredible stock price. Most valuable/profitable company in the US, possibly on earth. Their money comes primarily from consumer sales.
It's completely dishonest to say the failure of the TouchPad is " collateral damage." HP is out of the market because they simply don't have a product. And not only do they not have a tablet, they are losing PC sales to the iPad. Apple is sucking them dry.
Ask yourself this question: If the TouchPad had iPad sales numbers, do you think HP would still be getting out of the market?
Make no mistake. HP is dropping computer sales because they have been tanking mike crazy and they simply can't compete. No one looks at an HP product and says "ohhh that's nice! I want one!!"
actually, jsh1120 is absolutely correct. Look at the operating profit margin of any PC maker...they all hover around 7% or so when things are good. Apple has managed to keep themselves at 30% because they positioned themselves very well as a niche, luxury product, and they vertically integrated their business (no software licensing...they design hardware and software).
With the market as it is now, no company other than Apple could pull that off. And the PC business is one with very low margins. Manufacturers make very little off PC sales, and retailers make essentially none.
So yes, HP is absolutely dropping PC sales because they want to transition into a direct IBM competitor, where they will see higher margins. Wether the WebOS drop is related to this decision or not, who knows. The touchpad was certainly performing poorly enough to be dropped (though not because it had a poor os...it was poorly executed, and in todays tablet market, if its not an iPad or has the name android somewhere in its marketing, consumers don't care), but dropping it is also in line with HPs other actions, so it could really be either.
WebOS was and is great, smartly designed software...if you think otherwise then I'm afraid something may be clouding your judgement. However, with respect to the touchpad, it was rushed and half-baked, that is true.
I think HP selling the pads for $100 is a good move...get rid of all their stock, get touch pads in the hands of as many people as possible, so that devs will still have a market to make apps for, and there is more incentive to sell the platform to someone else, as they'll already have a customer base. Its better for their business than letting them sit, thats for sure.