The Ubuntu project is looking to extend their reach and I for one am all for it. An embedded version of Ubuntu would definitely rejuvinate my Zaurus C1000 and extend its life significantly.
According to the announcement (see below), we may not have that long to wait for the first release:
"We will start more detailed planning at the Ubuntu Developer Summit next
week in Seville and the first release of this edition will be in October
with Ubuntu 7.10."
I've always felt that it would take a big player or two like Canonical and their Ubuntu project to advance and mature Linux to be a user-friendly OS capable of truly competing with Microsoft. I for one wish them much success because the entire open-source community will benefit from their involvement.