I'm sure in the next firmware update on the iPods and iPhones Apple will introduce some sort of relatively sophisticated authentication method which would require the hacking and reverse engineering of the Apple written firmware. Surely then Palm could only provide a workaround if they could prove they arrived at it without reverse engineering, otherwise 'then' it would be a legal issue wouldn't it?

Personally I think it's pretty shitty move by Palm to do it this way. Surely they'd gain more cred if they had proof they discussed the possibility of doing legitimately with Apple who then told them to fsck off. Why is it no different than me trying to impersonate a college student to avoid paying full price entry at the cinema?