First off this is not a slight against the AWESOME WebOS homebrew community. I would have bounced to an Android phone a long time ago if it wasn't for the amazing homebrew developers.
I'm just hoping the 1.3.5 upgrade debacle hasn't soured Palm on the benefits of an open community.
For those who haven't noticed, 1.3.5 fixed the infamous app limit by moving all apps to a new directory inside /media. Unfortunately, homebrew apps were not migrated to their new home because they didn't sit in the same folder as "official" apps. As I understand it, this is the ultimate cause of the "Reboot to install" error that many people have gotten when trying to download an app from the official catalog.
Normally this wouldn't be a huge deal; in fact the WebOS Internals guys released an Emergency Migration Tool that fixed the problem. But it relies on the users to install it, and many simply are not technically capable enough to do so without an exhaustive tutorial with pretty pictures.
So now the App Catalog is being flooded with zero and one star reviews for GREAT apps simply because they can't install the app. Developers are getting rightly annoyed at the lost revenue (check the Palm dev forums, paid app downloads are significantly DOWN since 1.3.5 hit), which is leading to a lot of stress on Chuq and the Palm support team.
I'm sure they understand the nuances of the situation, but realistically speaking this problem wouldn't have occurred if Palm took a more mainline stance on homebrew. I really hope this whole debacle isn't causing Palm to rethink their friendliness towards homebrew hackers.