That is actually not accurate. When Cingular introduced their 64k "smart SIM", they enabled a feature called Enhanced Network Selection (ENS). If your phone supports ENS and you have a 64k SIM card, then the old model of network selection (as helpermonkey describes) is supplanted by a more intelligent system.
While non-ENS phones/SIMs had a single home network that the phone would always prefer, ENS uses "load balancing" between both the blue and orange networks. Essentially, ENS examines the load on blue and orange and selects the network that is the least overloaded. This system is much better for Cingular, so they can more efficiently manage their spectrum capacity while they work to physically merge blue and orange over the next two years. ENS is essentially an interim solution. Once the two networks become one, it will become unecessary.
For some users, ENS has a side benefit of selecting a better signal. While non-ENS phones would always try to lock onto the home network no matter what (blue or orange, depending on what service you have), ENS phones will freely switch between the two. In some areas, for example, the orange signal is weak but your phone locks onto an almost unusable signal. ENS makes it less likely this will occur. As far as I understand it, the network switching is based on load balancing (which network has the fewest number of active connections) as opposed to signal balancing (which network has the strongest signal). That said, it's a good thing to be on a less congested network, as congestion impacts the quality of your connections, dropped calls, busy signals, etc.
They key, however, is that you must *both* have a 64k SIM and a phone that supports ENS. 64k SIM cards are backward compatible with non-ENS phones, but they obviously won't use ENS. So, if you put a 64k SIM in a 600 (which is not ENS capable), it will work exactly the same as a 32k SIM.
Cingular is shipping most new phones with ENS enabled in the firmware, so one would think since palmOne is customizing each model to the particular needs of the carrier that the 650 would support ENS. However, I haven't seen any confirmation one way or the other on this, so I guess we'll just have to wait and see once the Cingular 650's start shipping.
For a more in-depth discussion of ENS and 64k SIMs, see this thread on HoFo:
http://howardforums.com/showthread.p...hreadid=492681