Hold the phone, Palm has just lowered the white flag in the Palm/Apple iTunes sync wars, and the battles commence as according to an article on engadget mobile, Palm has announced the availability of webOS 1.2.1 for the Palm Pre.

WebOS 1.2.1 apparently fixes syncing issues with Exchange mail, but in a counterattack against Apple, webOS 1.2.1 also re-enables sync with iTunes.

Guess Palm doesn’t give a hoot about USB-IF approval or whether Apple wants the Palm Pre to sync with iTunes. So keep an eye out for the countermove from Apple in the near future that will no doubt break the sync once again.