Most criticism boils down to, "It's not a full-featured Windows laptop." Well, duh!
Let's see: Ultra-light / Inexpensive / Full-featured -- Choose any two.
In many ways, it tries to solve the same problems as the Nokia 770/N800 line -- but in a more conventional form-factor (i.e., it has a keyboard). Hopefully Palm can encourage a lively developer community at least as strong as Maemo's.
Update: here's Palm's Jeff Hawkins showing off his new baby: