iPhone 3G S(Speed). Palm Pre Killer

Looks like Apple has stolen the thunder out if Palm's Pre with the new IPhone 3G S (S for Speed!) with a faster processor, autofocus 3MP camera with fast video capture, a better battery life and more memory. All that for a cheaper price USD 199 and 299 for the 32 gig model. And the iPhone 3G is now a giveaway at USD99 (With a 2 year contract of course!).
Wow.
It's strange that 10 years before, the tables were turned. Palm had the most innovative PDAs, they had thousands of apps available and they were swimming in cash. Now Palm has 12 apps in their appstore vs 50,000 in the iPhone appstore. Palm used to bad mouth Window's mobile's multitasking and wifi/multimedia capabilities, giving the excuse of the "Zen of Palm". Well Apple has stolen the Zen idea and improved on it.
The difference is that Apple will not lie down on it's laurels, but will come out with innovations to protect it's market share. How long did Palm take to come out with a new device when it was at the top of the market? 2 years? Apple just gave Palm 1 day to celebrate then popped it's bubble with the iPhone 3G S and undercut Palm's Pre with it's USD99 Iphone 3G.
My first pda was a Palm M100 which I bought for USD149. As a first time pda/smartphone user now I would definitely grab the $99 Iphone 3G instead.