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UPDATE 2: Apple, predictably, comments to Digital Daily:

“As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

UPDATE 1: PreCentral.net is back with the low-down on how Palm re-enabled iTunes sync in webOS 1.2.1:

by setting its Manufacturer to Apple and also perhaps by changing the USB Product ID to the iPod Video's (they even changing the serial number that appears when you plug it in with Media Sync).

ORIGINAL: Palm has just updated their software to webOS 1.2.1, and according to PreCentral.net, the changelog reads "Resolves an issue preventing media sync from working with latest version of iTunes (9.0.1)"

Congrats Palm, just after we went and praised you for finally putting users ahead of your own ego, for spending your limited resources on solidifying your own software rather than hacking someone elses, after the USB-IF slapped the hand you yourself raised, you went ahead and showed your desire for blog press and whatever "daddy issues" exist between you and Apple, Rubinstein and Jobs, are what's most important to you. Kudos. Golf clap.

Bored now.