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WebOS looks good, but that's all it has going for it. Good apps are few and far in between, the OS is sluggish, half-baked (1.4 is horrendous in terms of bugs) and not really feature-filled. Yeah, it handles multitasking very well, but it fails on other basic things.
People want an iPhone because of it's simplistic design, but the main reason: applications. Hate Apple all you want because of their draconian ways but you can't knock the fact that they've created a great product that people love.
Palm needs new hardware that's comparable to devices such as the iPhone, Droid, and the new HTC devices that are about to rollout (Incredible, Supersonic, etc.) if they want to remain in the game.
Right now, WebOS is nothing more than a niche product; and that community can only be found here on Precentral, you go anywhere else, any other mobile forum or tech blog and it's either iPhone or Android. Those two are obviously leading the pack simply because they're innovating at a much faster rate.
Just my $0.02. Sorry for the ramble, and if I come off as a bit of a pessimist here it's only because like many others I'm frustrated with Palm; so much potential that's not being tapped.
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