It's a silly lie... He probably wishes he could take it back... Pretty stupid for him not anticipating such an obvious Q and not having a better answer prepared!
Imagine if he is caught "red handed" in this lie, with a photo or a verbal account of him having at least held iPhone prior to that interview? Boy, he'd really look stupid... Or maybe he'd start arguing, saying that it was for a second, and maybe dispute the date, saying that it was after this interview...
Either way, I think it's CEO's and everyone in a company responsibility to look closely at all competitors' products and try to improve on those products' successes and failures....
Rubenstein can of course backtrack from this stupid answer by saying: it was my way of trying to change the topic back to Palm. It was my way of saying that I don't want to talk about it... Of course everyone in our industry looks at everyone else's products. It's the nature of the competition...
I saw Palm's presentation at the 2010 CES
http://www.youtube.com/watch?v=Mn6oNKVd29g and it was pretty pathetic... No Charisma people, very home made... Rubenstein is way to stiff... Where was U2's Bono, if the Pre was such a hit

!?
In the end, it mostly comes down to Tech Support and integration with the desktops, that are far from dead! Apple is the King of such Integration... Sprint stores, or VZ - none of the carriers can compare with Apple Stores...
On other threads on this forum I often see the term Fragmentation used re: Android OS. I completely agree with such assessment! Google is just throwing it out there, and let the phone makers and carriers fight among themselves, diverting attention from iPhone...
Right now, even I wanted to get Palm device, why would I want to, if there hardly any support, and they are acting like the Future is between and the Cloud, and computers are just the interfaces to the Cloud...
Apple's iPhone Model makes most sense... But, the World Market is Huge, and so, let others keep iPhone on it toes!