But the whole point is that usually in embedded systems, there is no separation between "application" and "kernel", at least on the low-end of CPU power scale. To be able to isolate application level problems from kernel would already be a huge boon.
As a highly publicized anecdote, the Jeep hack of Miller and Valaseck was done by attacking through wireless, and replacing the CAN driver code to suit their needs. Not possible with proper isolation between critical system drivers and application layer.
It can also happen when using unsafe code with the Ada, Java, Pascal and Basic variants available for such devices, but the probability is lower.
Of course, the whole thing was broken anyhow as everything was running root.
But in almost everything else, I agree. I don't care if you have ring-0 on my Nest camera, because I'm more worried about network-level attacks or an attacker being able to read from the camera which (I'm guessing) is available via user space.
1: https://pdfs.semanticscholar.org/bc9c/491e215d4abad1be7de944...
The isolation helps reducing the attack surface.