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Yes, they can. If you are interested in walking, you'll need either a CF card or BT GPS. BT is generally easier to use as you can throw the GPS in your pocket and just hold the Axim in your hand, but they do cost a little more.
For software, most of the mapping software will work to track where you are in a city, but routing from point to point can be a challenge because some of the packages just assume you are in a car, so they obey the one-way traffic rules. Some do have a pedestrian mode, where those limits are ignored. OnCourseNavigator4 has that mode, for example.
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