All the information in your iTunes library, including playlists and such, is stored in an open XML file in your home directory. While I think it's a mistake for Apple to play cat-and-mouse with Palm over this, it's not as if Palm couldn't write their own syncing background app that does the exact same thing.

How is that anti-competitive? Apple has done absolutely nothing to prevent Palm from creating a a competing product to either iTunes or the iPod/iPhone. They have in fact given Palm a very strong incentive to do so instead of parasitically hijacking Apple's software.