I'd doubt that would be root rot. If the top (fronds) looks great then the plant would be healthy. It's not unusual for palms to produce roots above ground level. But what you have there looks to me to be a small palm kept in a pot for a while then, when planted in the ground, has grown larger quite rapidly. Those roots should reach the ground but if you've cleared away all the leaf bases they might dry out with their protection gone. From your description I'd say you have nothing to worry about.

It's actually been in the ground about 5 years and has about 5' of clear trunk. It's a relief to hear it's ok though. I'll probably put some more mulch around the base so those roots have something to grow into. I saw on another site that it was recommended. Giving the tree more stability can't be a bad thing.