His MobileTwitterific site says he's using the toolchain from the iPhone Dev Wiki. I incorrectly assumed that the headline (taken from reddit) was true since the article seemed so detailed.
Anyone using the real SDK who posted this kind of article would immediately be sued by Apple. But, more importantly, the kind of people who would have early access to the iPhone SDK just would never write something like this, especially not in their name. Nobody in the mac community wants to make an enemy of Steve Jobs.
Yeah embedded is definitely different - and a lot harder.
I did a startup once where we were developing a new display technology, and my partner (who is incidentally the greatest hacker I have ever come across) had to fit all software, including screen drivers, communication, logic, etc. into 2K of ROM and 4K of RAM.
64 megs? phew... That's 16.000 times as much as we had...