I got the PDA Panache stylus on a whim. Maybe it's just gentle enough on the screen that it seems safer and more natural to press a tiny bit harder ... but regardless, the bad spot becomes MUCH less noticeable when I'm using this stylus.
Other points: The nail-head top makes for a snug fit in the IIIc's stylus holder; no danger of falling out. Nice weighty feel and grooves for finger grip. The orange tip is so gentle on the screen that I'm hesitant to use the original plastic stylus -- for fear of (further) damaging my Palm!
I had been considering replacing my Palm before I got this stylus. Now, I simply don't need to.