The M100 aka Calvin reportedly has 2MB of RAM, a changeable face-plate, a plastic digitizer screen, black and white greyscale display, and does not have Flash RAM. It will have Palm's normal apps, an improved email app (methinks MultiMail), and a postit-like application that lets you save your drawings. The device will retail for $149 and have a cable instead of the normal cradle.
C|Net has also picked up the story. ZDNet has some pictures here. Freaky!!! I agree with some of the other PalmOS sites that this is a consumer product and could possibly be marketed for kids. I don't see anything that makes me think "Wow" like when I saw the Visor and the Palm V.