I agree that naming is important, yet I don't think calling them "palmtops" would have changed anything. Tablets were and often are still called "tablet computers", yet they usually have the same limitations.
Alas, we often just say "tablet", so it's still possible to make an artificial distinction between them and "real" computers such as laptops and desktops.
The idea behind "palmtop" is to appeal to the intuitions behind laptops and desktops, and suggest it should be subjected to the same rules (when possible).
I want to hang on to the sense of awe and amazement at the reality of having a powerful computer and all of the internet at our disposal at all times.