If by "blow it" you mean "failed to innovate", you're correct. Palm enjoyed basking in past glories, and believed more in doing one thing and one thing only.
Again, and again, and again, Palm has trailed behind the technology curve. Look how long it took them in the PDA market just to add a color screen to the silly thing. Their reason? People will prefer battery life over fancy graphics. Guess what? They didn't.
And finally, you're wrong about Palm and Apple.