First thought, like others here, went to Ari.
My second thought was, on the back of the Google-Motorola Deal, this announcement could provide a cheap and easy path to a highy developed, enterprise ready smartphone platform for a willing handset manufacturer that wants their own OS (that has a cult following not unlike the N900), and given that hardware/build quality was an issue for previous Palm devices, this may be a good thing.

The demise of WebOS, even in the short term, may drag Meego even further into consideration as a viable alternative, however given the impact "analysts" have on the industry these days, it could also represent as a sign that linux based platforms aren't viable (and I don't consider the crippled, hacked, closed, non upstream patch delivering Android as a Linux platform)