Three months after announcing Foleo, a companion technology to the Treo smartphone, Palm has cancelled the product.

Palm CEO Ed Colligan wrote on his corporate blog that his company is canceling the Foleo in order to focus on building a next-generation software platform for its handheld devices. According to Colligan, Palm is taking a $10 million hit to its earnings to stop production right now.

The Foleo, which looks like a mini-laptop, was greeted with yawns and quite a few sneers. While Apple was coming out with the flashy, hyped iPhone, Palm was offering up a … what exactly was this thing, anyway?

Just two weeks ago, Engadget.com in an open letter to Palm urged the company to stop wasting money on the Foleo:

“We all know this isn’t going anywhere. And even if it does do alright — and let’s be real, it’s never going to do better than alright — it’s really just a distraction from the main business you’re already neglecting. Besides, how many Treo companions do you expect to sell if the Treo itself isn’t up to snuff? The Foleo is not the way to make the core product better.”

Judging from the comments Colligan received on his blog, canceling the Foleo was the right thing to do. However, more than a few of those who commended Colligan in their comments also asked him for one of the prototype. “I promise that I won’t resell it on eBay,” wrote one Palm fan.

Are there any Palm fans out there who were planning to adopt the Foleo? I’d love to hear from you. How were you planning to use it, and what are your plans now that the product is canceled?