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Yeah, CPU + MCU isnt exactly a foreign or strange idea. And they're hardly developing "their own OS", just configuring a default linux distro with various integrations particularly around display, IO and custom applets to interface with existing linux terminal programs and libraries.
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They do appear to be trying to build something a bit more bespoke than that, where they want something like Fedora Silverblue or what systemd seems to want to present, in terms of contained overlays for snapshotting when you make changes and then going "oh no" without requiring a full reinstall.

God knows if they'll end up scaling back their goals, but the vision isn't "just" a few custom integrations.

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The idea of the "single OS, single CPU computer" has been a myth for a while now.

At least since they started running Java on SIM cards.

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