Yeah. That's a pretty good price on those things. I'm hoping to get one cheap the day after thanksgiving (last year Best Buy had an older Jornada for $125--got one, it was nice).
The other alternative would be the Toshiba 206mhz arm. I think it's the e340, but I'm not sure. The newer one is nice, but I think it's outside your price range. There are a few advantages with the iPaqs--they are supposed to have the best screen and they have the widest variety of accessories available.
However the Dell looks like the deal killer. Maybe everybody else will follow suit and drop prices to compete?