Enter Pre, a direct competitor of Apple in one of the most strategic lines of Apple's business. How do you think Apple should react when Pre starts (ab)using iTunes, thus gaining more ground and cannibalizing iPhone/iPod in process? I'm surprised they were nice enough to let it stay for a while instead of forcing a mandatory update down everyone's throat and making an incompatible change to the iTunes Store protocol (which would be justified given the shamelessness of Pre strategy).
Maybe Palm should consider making it's own compelling software instead of weaseling it's way through and piggybacking the success of Apple. Or, as a more open (yet inferior) alternative, use Microsoft Media Player as it's music software