Here is a reply to the link from a friend of mine:
Yes, I knew they had been headed towards linux for some time. They started hiring up linux programmers a couple of years ago. They don't want to have to license the OS like they have since the company split. So now they own the name Palm again and a perpetual license to use Palm OS 5.x forever without additional fees. The new OS will be linux at the core, but will have a Palm OS 5.x module, sorta like an emulator, though more likely like Wine allows Windows programs to run under linux. So I guess I would call it more of a compatibility layer. From what I hear there will be new devices coming soon too, though I don't know much on details now. The LifeDrive has been discontinued and will be replaced in fairly short order. I think it will be a positive move, but don';t forget they have Windows Mobile Phones out too. So they have all their bases covered. It seems like most the development is geared towards phones now days (Treos), though they haven't given up on traditional Palms yet.