Personally I liked the concept of the Foleo, and am a bit sad to see that Palm has put that project on a hold. An instant-on, equipped with full qwerty keyboard, weighing 2lb, wifi-enabled device sounds attractive to me – disregarding for a second the whole software part of the device.
Admittedly, not many people were charmed by it, and I can see why they have decided to do this right now. Also it is clear that Palm needs to focus the (little) energy they have left on something that will be successful. The Foleo did not look good in that respect.
I wish them luck and look forward to hearing more about them in the future.