It looks like retailers are going to have to do what Palm won't: Make the Palm Pixi genuinely cheap, or at least cheaper than the Pre. For example! Walmart's already cut the Pixi's price from $100 to $30—pre-launch.
The $30 Pixis (Pixies?) are backordered already, probably because this is far and away the best deal we've seen so far for this handset. This news does two things: It raises the possibility of a free-on-contract Pixi sometimes in the near future, and calls into question again whether or not the Pixi can ever be a truly good deal. Today, the Pre is $100 at Amazon, so a $30—or even free—Pixi might not be worth the loss of screen size, speed, Wi-Fi and camera quality. This isn't the kind of queasy, awkward decision a company that's so close to the brink needs its customers making right now anyway.