The more I think about it, the more I think that Palm has just sealed the fate of the Pre with its new Pixi -- assuming that its pricing is going to be below the newly reduced Pre (now $150).

If the Pixi sells for $99 (as anticipated) it will effectively kill Pre sales. There are a few apparent differences between the phones: the lack of WiFi on the Pixi, the smaller screen and the "always out" keyboard. Both have the WebOS (and related apps). Most people aren't going to care about the lack of WiFi. And most people are going to go for the lower-cost device. 

The people that are wiling to pay more for handsets will buy an iPhone or an Android device. The Pre is not sufficiently better than Android (though more refined in some respects) and it's clearly not better than the iPhone, despite its mutiple apps capability. 

The Centro had the guts of a Treo 750 but a $99 price tag. And that appears to be what Palm has done again with the Pixi. The question the Pixi raises is: Why buy a Pre?