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Exactly. I am pissed about this too. Not so because the resolution is smaller than a regular PocketPC smartphone, but because by being so MANY PPC applications and especially games won't run on this Treo (the standard PPC resolution is 240x320 and all apps have been tested for that alone -- in the BEST case you will get scrollbars, in the WORST case the app will crash). Same goes for HP's new phones that do the same thing btw, they go down to 240x240 in order to get space for a keyboard instead of have the keyboard sliding out. 
240x240 is a bit low of a resolution to do anything useful and the "keyboard" is very tiny but the real concern that immediately becomes apparent is that Windows Mobile is a power hog in comparison to Symbian, Linux, Palm OS, etc. which explains why Palm doesn't want to comment on the battery life of this phone.
Anonymous, please don't talk without knowing the facts. Windows Mobile 5 in particular does not live in RAM anymore (it turns it off on standby), and usually WM5 PDAs and phones now have about 20% better battery life than PPC2003 even when compared on the SAME hardware/batteries. So while the square resolution IS a problem, I don't expect the battery life to be one. As for the keyboard being too small, well, you can't make it infinitely big when you have a size restrain, now can you?
As for a Palm Desktop equivelant, PocketPCs don't need that because MS has desktop apps that can really sync to the PPC. So yeah, Outlook is needed. OExpress doesn't work and Thunderbird doesn't work either.
So basically us MacOS X users are given the royal screw job by Palm? so whats the alternative now for those of us who aren't part of the 'status quo'?
Since industry pundits have been making funeral plans for traditional PDAs for more than a year, and since smart phones have been destined to take their place, and since Palm just announced its newest smart phone is running that awful Windows Mobile, then how much longer will Palm be putting money into PalmOS? This is indeed a sad day.
And before you ask what's so awful about it, it's from Microsoft, that's what. They truly are trying to take over, and the world industry is just rolling over and exposing its soft white underbelly to the overlords from Redmond. It's sickening.
Maybe this will open a hole for Linux/Qtopia powered smart phones. Can't hurt to dream.
Preload this puppy with WM5 as you have done now
On CD ROM provide flash files for WM5, Palm5 and Linux (palm6 - whatever). Let the user choose his OS - since the hardware specs between a Palm based and a Windows based device won't be different
Now get hard to work on making a GSM/UMTS device 
I was forced to go to PPC about 3 months ago by my employer. Since then I have lost all data 4 times.
I wonder how many more crashes it will take before you will figure out how to make backups.
No crash is acceptable. But seriously. There are backup programs, you can restore your handheld in 10 minutes. Your hands are not tied. Make backups.
I was all upset over this as well.. But it would be nice to be able to run a ssh session, irc/aim/what not AND be able to do web searches all at once. I probably wont upgrade from my treo 600 for a long while.. Still sucks that they are going the windows route.
I really wish their was a properly multitasking Palm OS...
Maybe my next phone will be symbian powered 
Yes, I have some experience with WM5 and it sucks. It is a total power hog and not very stable either. Forget about a decent battery life with WM5. Both, Linux and Palm OS are significantly better choices for a mobile device, particularly Linux: More performance at less power, longer battery life, more stable, more secure, smaller memory footprint, more flexible.
I will never use a treo with windows. I do hope that this is just one model and not all the treo's to come. This way I will always buy the one with out windows. I love my 600, I get my company emails and more. We use Lotus Notes and I get all my PIM info synced wirelessly. So I do not know what corporate market they need to capture there is even software that works with exchange. Sounds to me like what they need is some good sales people and marketing with support. These lazy companies just want other people to do there work for them.
A sad day...
This is just such a strange move that started to worry me a while back.
The whole reason why someone would go buy a Palm is because the UI is simply superior to Windows Mobile / CE. This takes it's upper edge away completely, and I think it's safe to say that Palm will continue to go downhill from where they are now. This is the same thing as saying "Yo won Windows".
This is a very sad day indeed =(
Like the above poster said, the reason many people will choose Palm OS over Windows or Symbian is the way its working, the looks and the simplicity.
By putting Windows Mobile on a Palm the is no reason, except for looks, to take a Palm device anymore.
I hope they(Palm) see this a a transformation journey and get ready for the real thing Palmux!
Along with this losing move of delivering Treo+WM5, 240x240px, the next products palm are releasing (Zire 22 and Tungsten X) will be Palm0S 5.4 powered.It seems Palm is stucked in a non-innovation cycle. Treo 700 should have been Cobalt-Powered and not WM5!!!!
Cobalt (The would-be 6.0) exists just as emulation software,and development is discontinued. and I haven´t seen any Linux progress since the Linux adventure announce from Palm.
One of the first things we should have witnessed is an official Palm Desktop for Linux operating systems. Instead of that,the Linux community is constantly struggling to make Desktop PIM apps compatible with the palm gadgets. I don´t see a true will to support Linux on the part of Palm. Also I´m sure the agreement with MS includes some blockade to the Linux way imposed by Gates.
This way not only Microsoft wins the whole mobile computing gadget´s market, it also bans Linux compatibility with these devices. So the Linux-Palm tandem will eventually die, and if you want to use a Desktop PC+PDA they want to force you into windows as the only available way to go.
Moreover PalmSource has recently acquired by the japanese company that manufactures the NetFront browser, so expect no more OS development from then either (at least outside the asia market)
The only alternative way from now on is Sharp Zaurus+Qtopia.
Wish Palm had dealed with Trolltech instead of MS.
The Death of Palm is a long-announced one:
Since Sony discontinued their Clié products, that technologically speakin where the hardware spearhead for the palm computing platform, there have been too many fails and delays: Palm was veeery late to release any WiFi enabled handheld, ant it failed altogether at releasing Palm OS6 (Cobalt).
I wish I was wrong, but I´m afraid we are witnessing the death of the palm-computing mobile platform, ant that the Zire 22 and Tungsten X will be their last products.
Rest In Peace, Palm.
1) palm does not own palmOS at all
2) windows mobile (formerly called pocketPC) is cheaper to license!
3) windows devices have been outselling palm ones.
... hmm.. if you were a company called palm in this position what would you do?
They should have renamed palmOS something else because ACCESS ltd just cashes in on Palm, Inc's trademark



