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In law you can, as long as its part of the licence. In this case Apple (manufacturer) has the right to do what it wants with its product. Anti trust law does not apply, as Apple is not a monopoly on the media its selling. Palm could use Amazon or any other outlet for media.
If it were Apps the situation is different as it is the only place to legally install the Apps from, however the App store does not apply to Palm.
It is the same defence that you would use if you run a bar. You can sell / offer your service to whoever you want, and bar whoever you want. If you barred a person from drinking in your bar, and they kept breaking in to have a drink you would be in your rights to try and stop them. It matters not if they want to drink quietly or not, you still hold the key.
In this case Palm will be the ultimate loser.
They cant say that Apple offered the service to them and took it away (breaking agreed and implied by time contracts). They cannot say that Apple implied use (as they did not). They cannot say Anti Trust, as Palm has many ways of getting music (even from iTunes), so they are not locked out of the media.
Palm are playing the poor little picked on card at the moment, but in the past it was not the most open of companies when trying to use its tools and code. Plam OS has never been open source to the point that other companies can use it (except for Sony on licence) and its data file's (just like MS and Apple) were bespoke. They did not make these open to all at the time.
The upshot of this is that Apple has not legal binding to anyone who is not bought into Apple software/hardware experience. The changing of money for service and goods gives you that support. Palm has not done this so should expect to be dumped again at the next iteration of iTunes.
If I were fortuate enough to be able to get a Pre I think I would just use some other software for media management. Over the air might be the way (especially with that sexy charger). But Palm should suck it up and go legit. It makes it look weak, like a kid throwing stones and running away. For all those who think Apple should not block this well the fact is that they have to. To leave it will imply that its willing for all other devices to sync and if it lets that go eventually it will be statutory by vertue of it being the norm. Then Apple are in trouble.