Besides they don't come up with any improvements. Look at the Sony and Handspring models to see the real innovations. Handspring vs. Palm. Microsquash vs. Palm. Microsoft has deep pockets to attack, so it will be interesting to see who aligns the consumer planets.
Palm is no slouch on cashflow.
The most attractive thing about the Palm is the usability created with third party software companies. Doctors use them because they have MD databases and other specialized software that makes the Palm a great alternative to laptops. Applications that make the Palm a professional tool. Without such broad support by third party developers, the Palm is JUST another electronic organizer. Now it's a computer.