Dieter Bohn at PreCentral has posted this letter from Palm:
These are exciting times for Palm and our developer community. The Hot Apps promotion that we kicked off back in February is about to end with over 400 developers receiving a share of a million dollars. We recently launched the Summer Half Off promotion—a 50% discount for nearly every app in our catalog that was funded by Palm; developers still get their full earnings for each sale, but customers get half off. And we’re just getting started.
Sounds like a string of “oh crap, we’re dying” type moves to me.