Re-read the article. They're just running the Palm apps on top of a Linux kernel, and have no intention of open-sourcing those.
To me this looks very much like a take-only move from Palm, because their kernel's been poor all along. I'll change my mind once they start allowing the users to have a 100% FOSS stack on the palms. Of course they can't allow that, since Palm Source makes money porting the software stack to third party achitectures.