The things this appears to do well are better than the iPhone's -- there appear to be fewer walls between data, and the Synergy stuff is a very nice touch. The OS is built on JSON data sharing, and the webapps are installed locally. For all the sorts of things I do with iPhone apps, a local browser w/local data would be sufficient. What's more, since lots of people are making custom iPhone webapps anyway, it shouldn't be too hard to go a bit further and make them Palm-native to boot.
Games are going to be a big question, however. CSS+JS? Hm.