How much raw data is sent from the device to the computer? Or, to what extent is the information preprocessed before sending?
I could see palm rejection being implemented either in hardware or in software. When a user's palm is resting on the pad, there's a large area of slight capacitance change (i.e. hand is either just barely in contact with the surface, or very very close above it), which is not normal when the user is intentionally dragging their fingertip across the surface.
Does the touchpad report a real-time capacitance map across the whole surface? Or does it do some interpretation onboard and send to the machine what it thinks are the separate touch points and pressure values for each?