Windows XP Embedded

So now with Windows XP Embedded all a la mode I decided to check it out. What’s the first thing I see but a lengthy MS comparison between XP Embedded and Embedded Linux. Of course Linux comes off rather badly according to MS, losing on issues of costs (mostly for codecs), device support and testing, protocols (!), and perhaps most worrying, in ROM footprint. XP’s minimal footprint is 4.8MB but Lineo goes for a 2/4 ROM/RAM split with Red Hat recommending a 4/8 RAM/Flash split.

Can this be true? Is Linux sub-optimal for embedded applications? Or is it the usual MS FUD? When do I get my cute Linux wristwatch? Or will it run XP Embedded?

Apparently now isn’t a good time for Embedded Linux in the marketplace so I wonder are its woes due mainly to the general economic malaise, or competition from Embedded XP? Or is MS simply all wind and the OSes to beat are QNX or Embedded Java or Nucleus or OS-9 or what?