If your buddy is getting a color palm with a bunch of dust under the screen that retails for around $400, I'd be willing to bet he's getting an Ipaq pocket PC. All other "Palms" are closed off, whereas the ipaq is open. The advantage of a unit like this over a palm is that you can do a whole lot more with it, such as listen to MP3s, add memory, watch DivX, lots of things that one only classifies with a desktop.
In retrospect, the battery life is terrible compared to the palms like you'd be getting, but thats to be expected with the extra features you'd be getting. IMO, you'd be best off going with a pocket PC over a palm, esspecially if you want something abit more then an organizor