I have started to use KM palettes quite a bit now and I love them.
The only thing I wish I could do is if I could press escape key to dismiss it.
Right now to dismiss it I have to press my trigger key again.
Right now to get this behaviour I have to do this :
Make empty name macro and call my trigger again. I guess that works although I dislike how it will occupy one slot in the palette now.
I guess I can see why esc key does not default to quitting the palette since one can bind esc key to something else but I still think it would be quite nice if esc quit the palette by default.
What do you think?
Actually never mind. I actually like this default behaviour.
I have set my dismiss to be space key and it is pretty amazing. 
It’s not clear your exact setup, so I don’t know what default behavior you’re seeing. With that in mind, I figured I’d share something from my palette configurations which may also help you.
My palettes are set to activate by using the Show A Palette For One Action When my chosen Hot Key is triggered. Since the palettes don’t contain macros which have Escape as a trigger, pressing Escape (or loads of other keys which aren’t in use for the macros) dismisses my palettes.
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Yeah I just found out about Show A Palette For One Action from @JMichaelTX
I love it and am using it for all my ‘future’ palettes now. 