The link above will take you to a story that can only be described as minimally informative. Never the less, the subject is interesting.
PalmOS, as it stands now, is quite serviceable for lower end PDAs, but apparently is not particularly extensible. Attempts to do so have met with resounding yawns by potential buyers. It makes real sense for Palm to come up with a truly extensible operating system that is as efficient as the current PalmOS is now. Basing it on Linux is a no-brainer for them, though there are other candidates with similar capabilities. (SkyOS, QNX and the BSDs come to mind and I'm sure there are others.)
If Palm is to again become competitive, they desperately need both the flexibility of a modernized operating system and the increased capabilities. I love my Palm Zire (the cheapest model at the time I got it) but am painfully aware of it's limitations and the limitations it places on applications intended to run on it. It is simply too old and too limited to be viable in today's market. (Remember; Palm does not need to match devices like the Blackberry. They need to surpass it in capabilities and at a reasonable price.) The right OS would work on phones, PDAs and perhaps even ultra-portables like the Microsoft "Origami" class of devices.)
I'll be following this one closely, as will a LOT of others.