Palm has a little article on its website called "21st Century Technology." It discusses "some of the milestones to watch for in the coming year," from increased web access to better integration of corporate databases. The very last paragraph is about color and media.
Palm Computing and its partners, such as Handspring and Sony, are committed to bringing color and new media features to the Palm OS - but not at the expense of destroying the battery life, size, and weight of the handheld. Watch for color done right, but only when the technology is truly ready.
I have always admired Palm Computing for sticking to its guns and not doing color because everyone else was. If you read my "Color Possibility?" article, I discussed some of the gotchas that color brings, especially battery issues. Hopefully Palm et al. have "done color right."