Outgoing Apple Europe vice-president Diego Piacentini gives a little more insight into the Newton's untimely demise in this MacNN feature. Basically, it was a matter of focus which is a shame...The Newton Messagepad 2000 was and still is considered one of the best PDA's out there. The whole Newton OS was designed from the ground up as a handheld OS rather than some hacked Desktop OS (WinCE). The Palm isn't bad for what it does, but in my opinion, the NewtonOS was years ahead.
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