Re: Unfortunately, the high-end smartphone market is Apple's to lose.
In all fairness, Palm did a really good job at responding to the iPhone quickly by launching the Pre in 2009, a better device in a whole bunch of ways that showed a forward-looking awareness of the direction of the market. They just didn't really have the resources or the clout to get it off the ground, so were severely region and carrier-limited, and shortly out of money.
But I definitely wouldn't charge them with being asleep at the wheel. For my money, shoddiest attempt at survival has to go to Symbian and its absurd degree of modality, especially re: the hacking back on of a soft keyboard after the UI had long ago lost support for it. That was an entire extra context-free screen every time you wanted to type text anywhere. If Symbian had decided to proceed with UIQ (as per Sony's P900) regardless of most manufacturers' indifference, I think they would have been in a much healthier position, but once Nokia became the near-exclusive paymasters I guess that would have been politically difficult.