They're offering money for the TOP apps?
Kinda says it all, doesn't it? The top-selling apps should be making good money just by virtue of being - wait for it - the top-selling apps. So clearly the only way to make money from Palm's app store is for Palm to pay you itself. Is it any wonder that mobile developers are staying away in droves?
As a mobile dev myself, the only viable opportunities right now are iPhone (for current installed user base) and Android (for growth potential). My time is too valuable to invest in Palm's shaky future.