The HP press release did mention palmtops as a potential use for the Kittyhawk. It must certainly be something that HP is considering, but there are some problems to overcome.
The first version of KittyHawk requires a single 5 volt power supply, and the 95LX is 3 volts. Others have speculated that Kittyhawk might drain batteries quickly, unless power-saving software was developed for the 95LX. (See "User to User," page 23, for one suggestion on how Kittyhawk might be used with the 95LX soon.)