@cageordie: There was a perception that Linux is free. Well it isn't. When I worked for Motorola our group had four full time Linux maintenance engineers trying to hack the kernel in to a form that worked for us. When I worked on defense programs we bought VxWorks and then didn't need to worry about reworking the code.
That's my point. The economics are different in CE. I have worked on defence projects in the past, building small numbers of very expensive bespoke systems for a specific function. When you are doing that, the cost of a development licence and per-unit royalties just disappears into noise.
In the consumer electronics world however you can spend an afternoon arguing, for example, over whether it's absolutely necessary to fit a resistor costing fractions of a cent - so you really don't want to pay royalties if you can avoid it. You also have armies of programmers, many of them in countries with a low cost base. So you don't want a developer licence fee either.
Don't forget all the ancillary guff that comes with Linux too - graphics libraries, web browsers, you name it. You get a huge choice of packages with the least porting effort.
In many environments, Linux makes a very powerful argument. It might not be perfect but it can be made "good enough" - it's usually as good or better than the software that goes on top of it (unless you are actually building a Mars mission of course).