The Personal Systems Group includes multiple business units including Palm (Hardware), WebOS, Desktops, Notebooks, Monitors etc. HP will retain the Personal Systems Group (Leo wanted to spin it off as a separate business). But there is no plan to announce a revival of HP touchpad or the Palm hardware business unit.
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I am using the HP Elitebook 2540p, and pretty much all the functions work out of the box (lid open/close, special keys, sound, WiFi, wired, battery ACPI events, webcam, USB ports, display port, CD ROM drive). I am very happy with the performance. I use Ubuntu 11.04.