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I am not surprised at all, and I am quite sure that MS isn't either.
After all Palm only picked WinMo in order to have something to sell while developing WebOs. Everybody knew that at the moment they had an alternative from their own they would stick to it.
In my opinion, this will have no effect on MS at all. It will have most effect on Palm, which shares now with Nokia Maemo the title of most irrelevant OS and will soon be overtaken by the same Maemo.
Palm doesn't have today the strength to compete in this world, they have lost their window of opportunity.
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Hmm, i-Mate folded, Palm is dumping Win Mobile, HTC is doing a lot of Android, etc., no carrier markets their WinMO phones based on them being WinMo, maybe it's about time MS made there own device
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i-mate was already irrelevant for 2-3 years. And even when they were relevant, they were no more than an HTC marketing arm. Their closure this week doesn't mean anything.
About Palm, my opinion is above.
Regarding HTC, this is the main problem. But I still believe that at least for the time being, HTC will keep its focus on WinMo and release additional devices with Android. Maybe on this situation, a full MS device would only do damage.
My two cents.
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