HP certainly planned to kill only the WebOS hardware, but the bungling miscommunication, recanting, recommunication, all can’t help the fact that WebOS is now dead.  It was on life support already given the mediocre sales.  And HP might want to continue development of the software for some reason they haven’t communicated.  The most obvious being they might sell the whole thing, including patents to somebody.  Who would probably still axe it and keep the patents.  Though they’ve bungled that as well, and it now doesn’t seem likely they’ll find a buyer.  Sorry, but WebOS is dead.

They had mass layoffs in the hardware group already.  The software group is clearly rudderless and resumes are on the street.  I assume its only a matter of time before we see high profile defections to Apple or Android.  Put a cork in it.

And the whole ‘blame the hardware’ thing.  I’ve seen the same posts as you, presumably inspired by communication from inside HP’s software group.  But I don’t think its true.  I think the OS is not very good.  Its got great design inspiration, but it isn’t executed well.  If you want more details read Macro Arment’s post:

http://www.marco.org/2011/08/19/rose-colored-glasses

Let me quote just one line:

“But looking back at the TouchPad’s reviews, they were almost universally
in agreement that the software was just as mediocre as the hardware.”

I think the world has moved on.  Android is still an option despite its poor early reception.  Google and all its partners will just keep chugging away.  RIM is badly damaged by early sales figures for their tablet, but their hardcore base might yet carve out a niche market for them.  And its clear now that Microsoft still has a shot, given the early reviews of Windows 8 and the new ARM support and the fact that Apple still owns the market at this point.  Nobody thinks WebOS has any shot any more.

Apotheker’s extremely poor decisions may be reversed now that Whitman is in charge. With the huge demand that resulted from the “fire sale,” the OS is now in the hands of a lot more people than before, meaning that webOS could be poised for huge growth. Other platforms have begun using features that debuted in webOS 3 years ago.

Of the critiques I read of webOS, most deride the poor hardware or even the advertising. (The initial Pre TV ads will go down as possibly the worst product-launch ads since the Infiniti car brand.) Palm lacked the resources to properly launch webOS then it was controlled and tossed in the trash by a CEO who wanted to mothball his most profitable division. webOS is a great OS begging for intelligent and purposeful leadership.