PalmInfocenter have posted this update to the story. Ok it was posted on the 1st of April, but that doesn't mean it is an April fool's joke. I hope it isn't anyway.
The interesting thing is the post says the the emulator will allow 'most' garnet apps to work. I am betting that means that heavy media apps won't. It was like that with Styletap in the beginning, but maybe I'll be wrong.