John,
A 320x240 screen is just too small for programming, in Squeak or any other language. Programming is hard enough even when you have enough screen real estate...
Forgive me, but I just can not let this go un-rebuked. Many of us started our programming careers on machines like the venerable Apple II, which only had a 280x192 screen and a fixed pitch 40 by 24 text mode.
So, as Andreas mentioned, a lot of people once "knew" that you can't write an operating system in C. It seems that a lot of people now "know" that a 320 x 240 screen is too small for programming.
We really should be able to craft a version of Squeak that would be a usable development and runtime environment on a machine with the power of a 33 MHz 68K and a small display. I avoid saying a "Palm" because: 1) There are many low cost handhelds in this category. 2) The Palm OS has some limitations that could impede performance.
-Dean
P.S. This message is 40 characters wide by 37 lines, just to make a point. With a 6x8 font, it would fit completely on a 240 x 320 screen with room to spare.