My solution(s)
1) Stick a stake in the ground (anywhere) and label it "G". Then follow the original instructions, substituting "the stake labeled G" for "the gallows". IF there is a solution, that means that the location of the gallows is irrelevant, so putting it anywhere gives the same result. (Proved later)
2) This is the "timely solution" I mentioned earlier. It is based on case (1), with the gallows under the palm tree. Stand with your back to the palm tree, facing in the direction that sets the oak tree ahead and 45 degrees to the right of you (at your "1:30"). Pick a point on the horizon, and walk directly toward it until the oak tree is at your 3:00, stop and dig up the treasure.
Proving there is only one possible point, no matter where the gallows is. For simplicity of explanation and no loss of generality, assume that the Oak is directly east of the Palm. If the gallows is under the palm, then P' (the point staked out after walking form the gallows to the palm, then turning right) is the palm, while O' is directly north of the Oak at a distance equal to the distance between the trees. The treasure will be 1/2 way between the two trees on the W-E axis, and half the distance between the trees North of the W-E axis.
If you offset the gallows by x (Eastward), you will move P' Northward by x and O' Southward by x, not changing the treasure point.
If you move the gallows north by y, you will move P' West by y and O' east by y, again not affecting the treasure point.
Obviously, any relocation of the gallows can be done in two steps described above, so teh treasure point does not change.