Palm's last chance is the Linux desktop market
Palm needed to release the Cobalt platform so that the Treo could run a modern web browser and a modern media player, but Apple beat them to market with the iPhone and stole their customers. Their retail revenue stream instantly dried up and the channel has too much inventory.
Palm Incorporated is finished if the Apple App Store gets a Palm Emulator before they can reposition themselves for corporate customers that have software lock-in to the Garnet platform.
Palm OS is the only platform that fully integrates and syncs with the Linux desktop, so freetards are the only kind of user that still has a reason to buy Treo hardware. Palm Incorporated could also bankcrupted by an iPhone sync conduit for Evolution, or the success of the Open Moko phone.