The main attraction of the Palm Pixie, besides the cute and miniature design, is the built-in keyboard that is right in the front. This same keyboard does not have to worry about the slide-in mechanism of the Palm Pre, so the Palm Pixi allows for “taller” buttons to allow a better feel when typing.
Also, instead of the ball to navigate through menus, there is a “touch area”, which is used for forward and back gestures. One major Drawback is the lack of Wifi connectivity on this smartphone, but it is also aimed at a “cheaper” consumer, so this was probably omitted to keep costs low, which are to be cheaper than the $150-200 Pre.
Although not many details were provided on the Palm Pre, we still have a few specs. The Palm Pixie specs compared to the Palm Pre:
screen size is 2.63 inches with 320 x 400 resolution
Runs WebOS
No Wifi
GPS and Accelerometer built in
2 Megapixel Camera
Source: Walyou

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