Yes. You can tether too. Switch data back and forth. Pick the best tool for the best job. Especially the bigger touchscreen of N800 is attractive. E.g. for watching a movie.

Again, probably you won't need that much space. You just believe there might be some point in the future where you will need it, but you do not appear to know when nor appear to look well at all kind of easy alternatives.

Look at it from a different angle. People usually replace their phone after 1-2 years. In 2 years a new SD standard is developed. USB3 and DDR3 are standard then. Core 2 * is dead. AM2 is dead. A while ago, SD beated CF, but this was not a given in 2002. All stuff which seems to be upgradable but in reality it will be limited in the future. And in 1 or 2 years you want a new device already because all the hacks to keep the current device top notch are only a little less expensive than reselling the old device and buying a state of the art new one, and the related headache cause a great deal of hassle. A corporation like Nokia knows this, they thrive on selling their hardware. Still, they manage to not piss off their intelligent/geek/liber* customers too much.

Speaking of SD/CF/NAND/SSD if they're using a Linux kernel I wonder what FS they're going to use.

I'm pretty sure Android will be ported to such OMAP device easily. They're ported Android to netbooks as well. Not that it wasn't ported to NIT long ago... still, its a given, and if Palm are using Linux kernel and WebKit they might contribute back there as well. I don't know if you can expect additional open source contributions from Palm though.