Evan and I were talking about this the other day. Evan doesn't think that a takeover is Dell's style, and that a two-pronged strategy of PocketPC for their Axim product, and potentially Palm as a second platform wouldn't make sense. I of course countered with the fact that Dell ships both Windows and Linux pre-installed, but Evan was right when he pointed out that at least these two share the same hardware architecture.
I do think that Dell needs more "skin in the game" — handhelds and smartphones are going to become more ubiquitous as opposed to just selling more computers. With PalmOne (does any else get confused between the hardware company, and PalmSource, the software company?), Dell would get an entry not only into light-weight handhelds but also smartphones with the Treo line.
Evan still remains skeptical of a Dell takeover of PalmOne, but here is his parting comment: "Of course, if this brings the cost of the Treo down and makes it more available: bring it on!"