I wondered this too, and asked about it over at the PalmInfocenter comments 
page for this item. Here's what I was told:

You still need the update because Datebook app depends on the DST start/end 
time from the device for calendar events, if you checked the preference box 
for "New events use time zones".

On Sunday 25 February 2007 12:38:07 pm bbernstone wrote:
> just wondering.. if i have a phone that sets the time from the
> provider, wont that take care of it so i dont have to install this
> patch? (i have a 700p)
>
> --- In [email protected], "Don Ferguson" <[EMAIL PROTECTED]> wrote:
> > The attached was posted in another group.   It is relevant here and
>
> I
>
> > found no reference to this in searching past posts to this group.
> >
> >
> >
> > Cheers,
> >
> > Don
> >
> > ________________________________
> >
> > From: [EMAIL PROTECTED]
> > [mailto:[EMAIL PROTECTED] On Behalf Of Kalnel
> > Sent: Saturday, February 24, 2007 11:21 AM
> > To: [EMAIL PROTECTED]
> > Subject: [GTD] Daylight savings change in U.S. and Canada software
> > updates
> >
> >
> >
> > Just a heads-up to everyone in the U.S. and Canada, especially
>
> those who
>
> > use date-dependent software or handhelds (such as Outlook) and/or
> > smartphones, Palms, Pocket PCs, and Blackberries.




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