Smart move: Bringing the team that made the original Palm, Dubinsky and Hawkins, back in the fold.
Dumb move: Changing the name of the hardware group. You have at least 3 good brand names in there, use 'em!
Prediction: In less than 3 years, Palm will do it's best to reacquire the OS division and potentially do another name change. They love name changes at Palm. A quick recap, the first Palm was called a Pilot, then a Palm Pilot, then a USRobotics Palm Pilot, then a 3COM Palm Pilot, then 3Com Palm, and now just a Palm. Wheew!
In all seriousness, good luck Palm'ers and my friends at Handspring. I expect a WiFi/Bluetooth/Cell/Camera/PDA with a 350 Hemi and a coffee grinder by years-end. Go!