I was just wondering because then we could use many many applications.

Actually, no you wouldn't. If somehow you got WinCE to run properly on the empeg, you would still have to then develop or port applications to it. Basicially a programmer for WinCE has to make the program specificially for a few devices. When I bought my iPaq handheld when they first came out, I ran into this problem. Even though in theory WinCE 3.0 could run 2.0 programs, no 2.0 devices ran StronARM processors. I had to wait for programmers to specificially port their applications to WinCE 3.0 PocketPC edition for StrongARM processors (IE, just the iPaq at the time).

MS has since realised the freedom to choose whatever CPU was actually hurting the WinCE PDA market, thus all PocketPC 2002 devices are StrongARM running devices.