I guess what Dell needs to do is install an encrypted EEPROM chip in every battery, so it will be very hard to duplicate. (authorized 3rd party vendors can license the chips)
Of course, if the real point is to improve battery life, it should be possible to buy a car charger for the Axim and wire it to a battery pack taken from a cheap UPS. (the last one I checked was 7Ah at 12v!!!)
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Li-ion batteries have different chemistry than ni-cad or alkaline ones. A short circuit can cause them to explode, which is why they need internal circuitry to make them safe.
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Well, just about any good sized battery can explode under short circuit conditions. I have seen a AAA battery explode in a flashlight because the wrapper was nicked allowing a short circuit to the flashlight casing.