Letting Apple do the hard work of establishing consumer awareness for new product categories and then glomming onto their naming conventions -- that's smart.
webOS on a large screen device -- that could be brilliant.
Of course, Apple got more than their fair share of "pad" related jokes to go with that name. Can't imagine what HP will get with PalmPad...
Update: Now there are also rumors to suggest that PalmPad will differentiate itself from iPad with... a stylus. webOS phones have keyboards, webOS tablets have pen