Intel has hedged their bets with Merced. In addition, I believe they've also been porting Linux. I've not heard anything within the last year, but take that with a grain of salt since I've let most of my trade mag subscriptions lapse. Really, anything compared to a mainframe is a toy. The various flavors of MIPS are very much alive and well.
Home automation is another potential market.
Consequently the low power properties of Crusoe really excite me. Opinions my own and not representative of my employer. I read this with and agree modulo quite a lot. A large portion of the problem seems to be getting the fixes into RPM format and not the speed of actual fixes. 8 package is one apparently featuring the NXT buffer overrun bug.