The kernel used by Android is completly irrelevant to userspace and can be changed tomorrow at Google's will, and only OEMs and rooted devices will actually notice it.
On embedded there are plenty of OSes to choose from, with FOSS embedded industry support moving to MIT/BSD licensed kernels, as OEMs don't want to deal with shipping GPL code on embedded devices, specially after v3 happened.
One thing I'm observing is that macOS and Windows are basically regressing to have the same type of nonsense and quality issues that are indeed typical on desktop Linux. It's possible (but not certain) that they'll eventually cross paths. Linux might not take over the consumer desktop market (unless it's under a proprietary shell, like Android / ChromeOS), but Linux could possibly take over the high-end/power user/workstation market.
There is no fundamental reason why it can't eventually take over gaming, or even desktop.