You piqued our curiosity, too, and it took a few calls to get to the bottom of the new scenario, but here's the lowdown:
The Palms Fitness Center's scope is much reduced and it now only offers cardio equipment. That's still free to use as part of your resort fee. If you want to take advantage the full fitness center facilities at Palms Place, as a Palms guest that will incur a $15/day fee, which also includes access to Drift Spa. Note that if you're an LVA member, you are permitted to use our $50 all-purpose comp at Drift Spa; we're not sure if you can use the coupon against the $15/day Fitness Center fee, as we weren't able to connect with anyone who could confirm one way or the other, but we're guessing the answer is "yes," since we do have confirmation that it's fine to use it at the Palms Place spa.