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Assuming you're on 1.3.1 or later:
Device Info page, there's a "Reset Options" button at the very bottom. Hit this, then hit "Full Erase" in the next page. You'll see after the phone restarts that it's asking for a profile just like it did when you first got it from Palm, so everything should be gone. It will stay on the latest version of the OS installed though (doesn't "reset" all the way back to 1.1.0 or whatever the version was at original release).
You can hook up to a computer in USB-drive mode as well to make sure, but this appears to be pretty darn complete if it even wipes the owner's profile info...
I'll leave all the opinionating about your choice to others, you just asked how to do it not for "advice" on your decision.
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