Jenn K. Lee from Pocketables (via Engadget) tracked down the fellow named David, who snapped the photos. Apparently the non-functioning prototype was shot at Computex 2008 back in June, and the manufacturer is Compal. The nickname of the handset is: Tabasco.
This Compal Tabasco (pictured above) has a rear facing 3.2 megapixel camera with 2x optical zoom and a flash, a front-facing webcam, and it measures about 6.3 x 3.3 x 1.3-inches with a 4.5 or 5-inch screen.
Jenn also speculates that there's still a chance that this could become the Roteo (remember the rumor about Palm placing a huge order with Compal?). My take on this rumor, hopefully Palm got a better designed handset than this bulky Compal Tobasco. Because the trend that's in right now is slim and sleek, not the other way around.