Man I loved my HP iPAQ hx4700 PDA, 4" (640x480) VGA screen, 64MB of Ram, 624mhz Intel processor, and so on. It was a Cadillac of a PDA, and always received awesome reviews from tech sites (including later versions of it). 640x480 was a pretty rare resolution to find a small LCD screen back then, most PDAs only sported 320x240.
If they can bring that type of design (though obviously updated with todays specs) with Palm's WebOS, they'd have an incredibly nice Smartphone.
People might want to bash HP's PCs, but their PDAs were always pretty high quality (though not including the Compaq PDAs, those always seemed dinky). Looking forward to see what they can come up with.