Marketing drivel.
Any product deserved as an "infotainment" device deserves to fail for flagrant bastardization of the English language.
Intel is ready to charge once more unto the breach of system-on-a-chip (SoC) devices, this time with a new line of embedded processors based on the same instruction set used in all its desktop and mobile products. The chipmaker will release eight new x86-based SoC processors targeted at security, storage, and communication …
The embedded market is driven more by price and power consumption (and Intel fails big in both categories) than it is by compatibility. Sure, an x86 processor can run Windows, but that is of little use in embedded devices (in fact, it may be rather silly to do so, as suggested in http://www.pcworld.idg.com.au/index.php/id;282200690).
ARM, the listed competitor, can run a large range of embedded, PDA, laptop and desktop OSes (including Windows Mobile or whatever it is called these days) and a large range of Internet applications, including browsers with Java, Flash, etc. So I can't really see what using an x86 buys you, apart from five times the power use and price.
"Intel asserts that because most internet application development today is done using the x86 instruction set..."
Which shows just how little Intel's marketeers understand about internet applications.
The best Intel can truthfully claim is that the compiled portions of internet applications (i.e, LAMP, IIS, .NET runtime, etc) are most often compiled to the x86 instruction set. However, that has little relevance to internet application development, as server applications are most often written in intermediary languages (Java/.NET) which compile to their own bytecode or scripting languages (PHP/VBScript) which are interpreted.
And it's completely irrelevant to the client side. The client side will be running HTML, Javascript, Flash, and/or Java, all of which have parsers/compilers/runtimes optimised for various CPUs.