Networkworld reports that Palm has released an update to webOS that (for a change) doesn’t include code to bypass Apple’s attempt to block the Pre from syncing with iTunes. They have been going back and forth ever since the release of the Pre, with each side coming up with new hacks on Palm’s side and blocks on Apple’s side. (You didn’t really think the recent onslaught of iTunes updates were for all the new features, did you?)

Palm’s latest release doesn’t include another attempt to sync with iTunes, signaling an apparent surrender in the dispute. There was no mention of iTunes in Palm’s official blog entry on the new release, but the wording on Palm’s site is “[U]se the Palm media sync feature to transfer your DRM-free iTunes music, videos, and photos to your Pre.”

They may have been under pressure from other manufacturers. The USB Implementer’s Forum reportedly sided with Apple because Palm’s technique spoofed Apple’s USB Vendor ID to fool iTunes into accepting the Pre. More likely, Palm realized that they are facing enough of a challenge with the number of new Android-based phones hitting the market and decided their energies were better spent there.