Palm today released the first major update to its mobile platform webOS, an upgrade that includes support for paid apps in the Palm Catalog store and over-the-air downloads from Amazon's MP3 Store.

Also noteworthy in Palm's (NASDAQ: PALM) webOS 1.2 is what's missing -- the ability for the Palm Pre to sync directly with Apple's (NASDAQ: AAPL) iTunes software. The two rivals had been involved in a back-and-forth standoff over the feature.

But with webOS 1.2's over-the-air download support for Amazon's music store, the issue may be moot, as it could signal that Palm is now focusing on an alternative to a direct sync with iTunes.

Other key features of the update include support for cut-and-paste functionality for e-mail and Web pages, LinkedIn contact syncing and the ability to download files within the browser.

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