>>Microsoft would be smart to do that. I can also see them offering incentives to resellers. Things like, buy one get one free.

I'm sure you're right, though the traditional business channel isn't a good target IMHO because phones are acquired cheaply when a customer signs for another 2 years with T-Mobile or whoever. And T-Mobile is in the business of keeping customers for as many years as possible, not shifting phones. The real purpose of the phone is a cool trinket to get somebody to sign up again. Even if it's free, it has to be seriously cool at the user level rather than at the CFO or developer level to make a dent in this market.

Perhaps MS knows this- they've kept the phone manufacturers onboard (though they're all offering Android phones too) while losing the traditional box-shifters.

>>As for Palm, HP has already said they have big plans for WebOS.

They've trademarked the "PalmPad" brand but surely they can see that being distant 3rd or 4th is pointless when Android is ubiquitous and effectively free.