I think the first part of your post is correct, but I think it has less to do with ad/apps revenue, and more to do with engendering good will toward the WebOS b

I think the first part of your post is correct, but I think it has less to do with ad/apps revenue, and more to do with engendering good will toward the WebOS brand to keep the resell value of the IP high. The Touchpad sale thus far has tarnished the reputations of a few third party resellers who mishandled inventory management during the firesale, see: http://www.amazon.com/gp/help/seller/at-a-glance.html?ie=UTF8&seller=A33Y0YQUZ2NYD5 http://www.amazon.com/gp/help/seller/at-a-glance.html?ie=UTF... (note 30 day negative percentage) http://www.resellerratings.com/store/Onsale http://www.resellerratings.com/store/Onsale http://www.resellerratings.com/store/Datavis http://www.resellerratings.com/store/Datavis By making more units HP comes across as the 'good guy' here towards the (perhaps bargain-minded) early adopters and gives people an increased positive impression of the WebOS brand and I think they are hoping that'll help them get back something closer to what they paid for Palm when they attempt to resell it all (which I think they will do, though obviously this is just speculation on my part).