They have a patent for their specific system, so Palm or any other competitor will only have to come up with a slightly different system for it to work (I think the popular rule of thumb I have heard is it has to be 10% different from the patented system, not sure if that is true). I kind of doubt that you can patent a hand/finger motion like "swiping" or "pinching" and have that hold up in a court. I also don't think that they can claim a patent for capacitive multi-touch screens in general either, since they aren't the only ones to develop them at the same time.
In the end, I don't think this will stop anyone from doing using this kind of technology really. Apple might get to license the technology out for a while, but in the end it will likely just get to big and diversified to be worth keeping track of.
Its a very similar situation that Color Kinetics had with LED lighting and control systems (you see them all the time but may not have noticed it really). They initially were awarded the patent for any RGB LED lighting systems that could essentially make any color of light at a very reasonable level of brightness, while using a fraction of the power compared to conventional incandescent or flourescent lighting.
For a while, any company that used similar technology had to first go through Color Kinetics and had to post a "Licensed By" sticker on their product. But companies quickly started coming out with systems that did a similar function but in slightly different ways, and there really isn't much that they can do. Color Kinetics is now owned by the Phillips lighting division and is still a major competitor in the LED lighting world, but they are hardly the only ones.
We'll see where this goes I guess.
JH