It’s one of the best rumors running around the net right now. Just a few years ago, Palm was on the verge of introducing a new category of computer with the Palm Foleo. It’s design was ready, the buzz was showing vast interest from the mobile obsessed, and then, at the eleventh hour, the entire project was shelved leaving many to wonder what the hell happened? And to make matters worse, net books came out and set the entire industry on fire just a few months later. Now, the rumor mill is abuzz with the possibility that the Palm Foleo lives.

This rumor may be ripe speculation since the Palm Pre is about to be released with a brand new OS that Palm’s executives have said may be just the beginning. And with former MAC designers shepherding the project and giving it the Pre a slick look to rival Cupertino’s iPhone, could it be Palm is indeed setting their sites on bringing the Foleo back from the grave? All the stars are aligned and if the Pre lives up to the hype and becomes the iPhone killer everyone is hyping it to be, who knows? There’s plenty of room for another netbook, and if it syncs seamlessly with the Pre, it may be just the companion/followup gadget Palm needs to firmly be back in the black.

Hat Tip – Harry McCracken’s Technologizer