Data view palette is basically used to create/delete a connection and bind the elements listed there to form fields.
In case of Web Dynpro the you will get the complete context defined from WD app in Data View, now you can create a simple text field and bind this field to WD context. This ensures that the data you entered in form is saved in the context and available to your WD applciation.
This is what the Adobe LiveCycle Designer Help lists. Check it for more information.
You can create the content of a form design to correspond to a full or partial data source. The available data sources include XML schemas, OLEDB databases, sample XML data files, and WSDL files.
By default, the Data View palette displays the hierarchy derived from the data source that you select. You can expand the view to display information about the selected node in the hierarchy.
Chintan
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