Apple did well with its iPods because it out-competed their opponents. Obviously Apple is threatened by the Pre, the whole iPhone 3GS is the most pitiful update to an Apple product yet and they obviously must know that. Their only defence against Palm right now is to block their products from using iTunes and threaten lawsuits. It's utterly pathetic and wholly shameful on Apple.
But remember, Apple out-competed their iPod opponents by making not just a hardware MP3 player, but also a best-of-class jukebox and wholly innovative online music marketplace and integrating them all together. This integration has been shown time and time again to be the force that gives iPod an edge over competitors. In short, iPod "just works".
Enter the Palm Pre which is just a device. No jukebox. No music store. At this point, if Palm wants to compete, it could invest in building its own media jukebox and online store. Instead, it decides to use 2/3s of the technology of the product it's supposedly competing against by masquerading as the competitor itself.
It's as if you take a Boxter, replace the steering wheel, and then call yourself a competitor to Porsche. At best you are partners with Porsche, and at worst you're ripping them off. In either case, it hardly looks like the level competitive playing field you call for.