Response I have from Google was, "not a bug" ?!?
Yep, and another thing to remember, Apple uses the vendor ID for iTunes to know how to operate the device (think software drivers for hardware), Palm in using the Apple's vendor ID the way they have, and also telling the public about it, effectively breaks every consumer guarantee law that some countries have, because they put themselves in a position where they have no control over the driver, and therefore no control over the claimed ability of the device, this effectively translates as false advertising, and making promises they can't keep.
In short, Palm were lazy and Apple called them on it. (FYI, in New Zealand Palm has broken the law, anyone that buys one of these devices in New Zealand, has the right under Law to sue Palm for false advertising, among other things).
The person who makes no mistakes does not usually make anything.