Blue Nomad Software (formerly BackupBuddy Software) released today a public beta of WordSmith, the first word processor for the Palm OS.
I was able to play with an early version of WordSmith, and it sets the standard for DOC editors. WordSmith allows you to read/edit either DOC or Memo files and fully synchronizes with Microsoft Word for Windows and also works with .RTF files. There are also converters for Mac and Linux users.
There are also extensive keyboard support, including keyboard shortcuts like ctrl-b to bold text and menu navigation via the arrow keys.
But the best part about WordSmith is the ability to finally have formatted text in your documents. Bold, italizize, superscript, large fonts, etc. -- it's all here.