Interesting write up from the Register about Windows CE 5.0, it looks like they actually "get it"...
Take MS code, change it
This gives you 2.5 million lines of code, and you can change it, and you can keep the changes to yourself; so you don't find yourself giving away clever tricks to your biggest rivals.
It is also far cheaper. Poppinga says that Microsoft doesn't plan to makes it revenue selling software development tools at $50,000 a pop. Instead, it hopes to make $3.00 royalty per device sold - something he says none of his rivals will do.
But for me, the significant part of the deal is that it pushes .Net framework out there. The whole Compact Framework is now built into all Windows Mobile devices and while there's a lot more to "embedded" than mobile, mobile is still where Microsoft sees growth. And if it can hook a whole bunch of Express buyers for a $30 entrance fee and a whole bunch of mobile developers for a $999 developer package, then the number of .Net frameworks out there will grow.