Palm provides an OTA backup service to ease restores. You opt into it when you start the phone and can turn it off at any time. Obviously it sends this and all sorts of data to their servers. Considering that TFA doesn't mention disabling this service, I have to wonder if he's a) right b) malicious c) stupid.

Umm, isn't this simply the Palm Profile feature that backs up your device every night OTA? You're asked if you wish to use the service when you first start your phone, and it can be disabled and rescheduled any time you wish.