XP Embedded being "better" than Embedded Linux maybe isn't the right
approach. Each OS has features and functions that make them a better choice
for different devices but each scenario has different circumstances.
For example, let's say your creating a Thin Client and you want to have the
Citrix Client, RDP support, and a web browser. XP Embedded may be a better
choice here because of it's rich multimedia capabilities, it's ability to
offer the full "web experience", the ability to get and support new versions
of the ICA client, RDP, etc, etc.
Now let's say that you have a 32MB footprint limitation and need a service
that will listen for incoming traffic on a serial connection, do something
with the data, and return a result. This system will be headless and run on
a 233MHz processor. In this case XP Embedded may not be the best choice, it
may be Linux, or it could be Windows CE. ;-)
Now a significant portion of the argument for Linux over XP Embedded often
comes down to price. But keep in mind that development costs, support
scenarios, and GPL issues (all software has to be available for download and
comply with GPL which costs money) will sometimes negate the savings from
licensing. This is not true in all scenarios but I have personally been part
of a few studies and often the savings is insignificant.
So each OS has it's place and if used correctly will benefit the OEM and the
That's three cents worth but I don't mind spending the extra penny. ;-)