1) NOTHING in iTunes prevents a Pre user from dowloading and listening to and managing music, nor does it force them to use a competing application to do that. iTunes simply only syncs natively with Apple devices. NOTHING in iTunes prevents music files from being used with non-apple devices (now that DRM is gone) so long as they pay license for and support the AAC file format. Non-DRM music from other sources is also fully compatible with iTunes.
2) MANY devices use the iTunes XML database as a source of information about music, playlists, and other files managed by iTunes and use this data with THEIR OWN DRIVER to sync the device and the library. NOTHING in Apple's policies prevent plug-in applications or access to that data. I have 3 apps on my PC from 3rd parties that interface directly with iTunes (in REAL TIME), adding, moving, managing, and syncing songs. ANY company who wants preconfigured playlists and music managed by iTunes to sync to their devices CAN, though simple software...
3) Apple offers (for reasonable fees) support for 3rd parties to support iTunes. Palm REFUSED this service, and REFUSED to write their own applications to support Apple's approved processes, and instead chose to bypass the Apple EULA, the USB spec, and more in the attempt to show up as a native managed device at no cost to themselves.
4) It's not just an icon in the left pane of iTunes, and some syncing code Palm is abusing. When an icon lands in that pane, clicking on it opens a SLEW of other integrated software features for managing that device, sub-programs that manage how and what is sysnced, firmware patch management, battery charge states, USB disk volumes, mail, calendar, contact, and more syncing (some licensed through ADDTIONAL 3rd parties at Apple's expense) and more for those devices. APPLE is being forced to exception handle Palm's device in these screens at their own expense when features the software expects based on device IDs are not available, fail to respond, and more. Palm has provided Apple no money, no support, and only grief on this effort. The more devices palm releases, the worse this will get for Apple, and it is unnecessary.
5) iTunes is not a monopoly, because it's NOT A WHOLE MARKET unto itself. Though they may control 80% of purchased donloads in many countries, that data is a) unrestricted, b) compatible with other players and AAC has been easily and cheaply licensed for a LONG time, c) in itself is a PIECE of the MUSIC market, which the trade of music itself would have to be prevented by apple, and they would have to actively prevent new music distributors from entering the market, which they do not. They're not the cheapest, yet people use them. They're interface is more restrictive (can't buy through a web site, only through the app), but yet people use them more. Apple has made no direct moves against Amazon, Walmart, or any other online music vendor, nor have they put up barriers to the competition entering that market. They have not comitted to exclusivity agreements with music vendors (except for some special releases, which EACH online store uses as a sales tactic). They do not imnpose strict control on the artists, nor extreme fees or other obstacles, nor penalties for choosing not to distrubute music or distributing it through multiple vendors. They are simple a vendor, a popular one, in a field of vendors where people have CHOSEN to use them, and can EASILY break away and choose someone else at ANY time. They're providing a free software package, open access, and freely licence the few technologies they're using that are not already open sourced. Even if they took over 100% of all music downloads, people would still both have the coice of acquiring media in other forms, and even if they did not, they can still use iTunes purchased media on ANY device supporting AAC. The ONLY obstacle to using a 3rd party device with an iTunes LIBRARY (which is what can be restricted as THAT is the market, the APPLICATION is NOT the market) is the inconvenience of having to use a 3rd party app to interface with the FREELY accessible XML data file. It's even completely possible to use an iPod with 3rd party syncing tools and other libraries, and it;s possible to use an iPod and iTunes without ever giving a cent to Apple (aside from CHOOSING to buy the iPod).
It should be noted as well that Apple lobied to remove FairPlay from ALL downloads, including ringtones, movies, TV shows, and apps, but it was the MPAA who refused to allow that, and the consortium of media companies who restricted them from doing so with music for so long.
Summary: Palm is trying to leverage Apple to support their device without paying apple to do that, is doing so using defamitory press releases, and it's completely unnecessary for it to be done. Apple is NOT a legal monopoly (note: even if they were, being a monopoly is not illegal), and does not restrict music in iTunes from being used with a Pre, they're just not required by law to make it easy, nor do it at their own expense.