Yup, Bloo-tooth.

Bluetooth is very similar to IrDA, only no line-of-sight needed obviously. The newer palm handhelds (Tungsten) have BT built-in, and I think that you can get BT modules for the m series. There would be very little coding involved to get Palantir working with Bluetooth, since OBEX is supported over Bluetooth.

Of course you would have to have to install some kind of BT device in the Empeg, either hardwired like has been done before, or a serial port BT module.