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"Anyhow, Palm has it all backwards. It's not like everyone used iTunes and loved it so much that they bought an apple device. They loved the device so much that they put up with iTunes."
Er...that's exactly the problem, and Palm doesn't have it backwards. Precisely because lots of people have iPods, they've already invested time and money getting a database of content in iTunes, and it's therefore a significant problem for the Pre if it can't sync with that. That would be a big reason for people to buy an iPhone instead of a Pre.