Linux is not fragmented. It's big and diverse, with players focusing on everything from embedded apps (TiVo set top bixes, TV remote controllers, palm tops and wristwatches) to the extreme high end (NASA just announced a deal with Intel and SGI for a 10,240 processor system with 500 terabytes of ram - not disk - ram).
One Linux kernel development stream, with its head at Linus, remains, as always the centralizing force behind all this.
Desktops will take a bit longer to dominate ... years not months. Their time will come.
I had not heard about that !
Got a link?
I bet a computer like that could load "The Sims" in less than two minutes!