The problem isn't that people don't want Linux based PDAs, it's that they can't get them. Sharp's own marketing policy over the past few years is its reason for failure.
In order for people to want your product they mus be able to get your product. Sharp have been happy to service Japan but have put heavy brakes on distributing elsewhere. The rather neat clamshells were a typical example, available in the UK only though importers and with software that was only partially translated from Japanese.
The reason Palm and MS based systems are more popular is because you can buy them anywhere. Try and find a Linux based one and you'll see what I mean.