In the phone space, perhaps. WebOS does have a leg up over Android here, it is an OS built from the ground up for touch by finger. Just as iOS, and WP7 are. Android is improving in this regard (3.0 started taking it more seriously and 4.0 is improving), but it has a ways to go to outgrow it's older smartphone roots.

WebOS would have a hard time gaining momentum here due to the dominance of the other strong newer generation mobile platforms. Should be interesting to see if any of the HTC/Samsung types of the world start using WebOS as a possible club against Google if they feel they are losing the control they want over Android.

The touch tablet side is definitely not over. iOS is 90%+ of this market. WebOS is almost as strong as Android in this space fighting over the current scraps. This is in part due to the firesale HP ran. Microsoft isn't even here yet, though they look to be arriving with a pretty serious platform with Windows 8. (I've had some hands on experiences recently). Google and friends show no signs of slowing their attempts, and HP has also commented they may do future tablet hardware. Should be an interesting couple of years in the space.