My understanding of Palantir's actual, technical offering is profoundly boring: a hosted platform that connects to existing diverse sources of data and organizes them according to well-defined (by Palantir's FDEs) useful schemas. I have developed this impression through actually building a product on the Foundry as well as several rounds of interviews. Frankly that is profoundly boring. The anti-Palantir propaganda, portraying them as this all-powerful Skynet software, is as much a part of their marketing as anything else.

On the other hand, their effectiveness appears to be less in question: the article above claims that Scotland Yard found hundreds of police officers to have been abusing their posts in various ways through use of the Palantir system. I am not a fan of corrupt cops, so I think this is good. Similar stories exist elsewhere, like a 68% reduction in 48-hour mortality at a Tampa hospital through deployment of Palantir's anti-sepsis monitoring tech.

Thus I arrive at the conclusion that this decision is ultimately a loss. Khan's legal standing appears to rely on them not investigating other potential suppliers—I'm not sure that there are any, and "develop these simple data systems in-house" is a bad option because if they could have they would. I suppose ultimately I don't think that Palantir's "bad vibes" among constituents should impact governments' desire to be effective in the programs they purport implement.