P.S. I can so relate to the story, when we were doing LearningToGo,
It was a great 3 years of building softwares (up to 12 at its height), and we were one of the top softwares in the education market (and won awards) -- in Handango.com -- which is the official software catalog on the Palm.com domain.
We had a fierce competition, who started a month after we did, PocketLingo (http://www.pocketlingo.com) -- their site looks exactly the same when they started back in 2002. We eventually gave up due to a losing Palm market and the lack of innovation with new products and existing ones. :) I would say the competition burned us up. :) Handmark came in the following years with their own education softwares.
When i read the Audion story, it reminds me why i want to be part of a small software company -- and i'm happy to know that i'm part of a good one now. Hopefully, we'll kick ass and live the good times again -- we're slowly going there now. :)