Well you can run a VM in much smaller footprints. I can run Java on at Atmega128 for example, with multiple threads, GC, etc. Sun had a reduced JVM running on 2K MSPs (no GC, single-thread). It just depends on how much of the functionality you want, how much of a class library, and where you put the trade-off between speed and memory consumption.

As for features, the chip in the panda costs $13.44 in single quantities, and $8.13 in volume. An Atmega1281 costs $13.12 in single quantities, and $7.32 in volume. I can see how having a .NET runtime built into your chip with a class library to drive all your peripherals is worth a few extra cents.

> Normally I wouldn't care in the slightest what language you use, but I guess you could say I am nervous that interpreted languages would be favoured due to popularity and familiarity rather than sound design decisions, and rapidly take over the embedded market.

I'd say C is currently favored due to popularity and familiarity rather than sound design decisions. Either way, why would you be nervous about global trends? The embedded systems world is easy to predict, it's always 10-20 years behind the rest. We'll be programming in JavaScript before long :D

source:

http://search.digikey.com/scripts/DkSearch/dksus.dll?Cat=255... http://search.digikey.com/scripts/DkSearch/dksus.dll?Detail&...

You're right on the price comparison. I don't actually use the ATmegas, they are just popular, which is why I discussed them. I personally prefer MSP430's most of the time, which can be had as cheaply as $0.50