According to Blogeee, Psion has basically decided to give up and let other computer makers refer to their products as netbooks. There’s no word on whether Intel is giving up anything in the deal, or if Psion folded for another reason. (Perhaps things weren’t going the company’s way in court, or the legal costs were too high).
I haven’t seen any confirmation of the agreement from Psion, Intel, or any of the other parties involved in the dispute yet. But Pierre at Blogeee assures me that his source is quite reliable.