Dubinksy has a long and storied history at Palm and one that will soon end. According to a recent SEC filing, she will soon resign from the company’s board of directors. Seems the $100 million Elevation Partners invested in Palm last year gives it the right to designate an additional director for election to the company’s board. But the board prefers to maintain its current size, so rather than add a new director it will replace one. And Dubinsky volunteered her spot. Queued up to replace her: Rajiv Dutta, former President of eBay Marketplaces and Executive VP of eBay (EBAY).

I think it’s probably the most disappointing product I’ve seen in several years. To think that anyone would carry something with a 10-inch display at 2.5 pounds as an adjunct to a phone just doesn’t make any sense to me.”

–Gartner analyst Todd Kort

Maybe the Foleo wasn’t Palm founder Jeff Hawkins’s “best idea ever.” This afternoon Palm said it is scrapping the Clio-esque “mobile companion” that it launched with great fanfare in late May. “In the course of the past several months, it has become clear that the right path for Palm is to offer a single, consistent user experience around this new platform design and a single focus for our platform development efforts,” Palm CEO Ed Colligan wrote in a post to Palm’s blog. “To that end, and after careful deliberation, I have decided to cancel the Foleo mobile companion product in its current configuration and focus all of our energies on delivering our next-generation platform and the first smart phones that will bring this platform to market.”

An astonishing turn of events, really. The $499 device was scheduled to ship in summer 2007. And Palm was insisting it was on track to do so as recently as Aug. 24. Apparently, the company decided it was better off taking a $10 million charge to earnings for canceling the Foleo than launching it in a market that has questioned its viability since the day it was announced. “I think Palm was wise enough to pull back when all the signs were indicating negative,” analyst Kort told IDG. “If they would have poured a lot of resources into this and failed, it could have dragged the company down pretty quickly.”