I think that was exactly Palm's advantage: it did not try to be a very small PC, but very practical, extendable organizer

Palm m505 costs $399 and iPAQ 3765 is $499. The iPAQ is infinitely better (I own both an m505 and iPAQ 3670).

For $100 difference, there is no question which is the better buy. Palm's problem is they think they can command a lot of money for such a limited platform.