Palm's new version of its operating system to both Pre and Pixi devices has one important thing missing – it no longer syncs seamlessly with iTunes.

This upgrade announces the end of a development war between Palm and Apple. Jobs Mob was incandescent with rage at the prospect of making money selling music to people who were not going to play it on a machine with an Apple badge on it. Everything it released an iTunes upgrade it included code which blocked Palm from sincing to the digital jukebox. Palm replied with an upgrade of its own that unblocked access and so the game continued.

It seems that Palm is finally caving to Apple’s strong arm, or perhaps is only following directions from an industry forum that oversees USB connections. Palm filed a complaint with the USB Implementers Forum, claiming that Apple was restraining trade by not allowing its devices to connect to iTunes. The Forum dismissed Palm’s claims, and asserted that Apple was not in violation of its policies.

It seems that Palm was unable to find any friends in the industry for its stance and has decided to cut its losses before it receives nasty letters from Apple's own legal team.