Tim, you are very right about the new Palms solving at least some of
this problem.

At CeBIT, a small corner of the Palm booth was devoted to developer
stuff and they had a ARM based PalmOS development board that they were
demoing.  (The development staff were all from and I believe based in
France and were very nice and helpful!).

Interesting things they said which are interesting with respect to
Squeak:
(1) It have a emulator to run existing unchanged 68k applications - they
said they generally run about 6x faster than presently  (this reminds me
of the Apple PowerPC strategy)
(2) The segmented memory limitations will be eliminated for native ARM
applications
(3) The whole touch screen will now be visible and usable (no more
touchable printed icons at the bottom)

Mike