I guess Palm didn't want the expense to make their own music syncing software that worked along side iTunes. You can still copy tracks directly to the Pre in mass storage mode though, right?

I'd expect Apple to refine its device detection to make sure that the correct iPods are being recognized. Note that this is different than "blocking the Pre" - that's what I'd do in their shoes anyway. Of course Palm can just back out the hack they have in there now, especially since it can be argued to be a DMCA violation.