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"MS also was late in PDA arena and now PalmOS is dying..."
Pretty much a different situation though. MS was able to muscle their way into the PDA arena because of people were familiar with Windows, embedded Windows could run the same applications people were running on their PCs, and it also made transfering data back and forth between PCs and PDAs more natural. MS had a significant advantage of the PDA based on their already near total dominance of the desktop.
Linux, on the other hand, has no real advantage for the average consumer on cell phones. And since you brought up PDAs, Linux has been tried, and has largely failed on the PDA. Granted, interoperability between your cell phone and your PC is a lot less important than between your PDA and your PC, but the line between what is a cell phone and what is a PDA is becoming increasingly blurred all the time as well.





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MS also was late in PDA arena and now PalmOS is dying...
Linux is attractive because there are no MS tax in every phone sold and you can make innovations because MS does not permit hardware companies to escape from "MS standard". See all the PocketPC PDAs: all of them have the same operating system, with the same appearence and the same software.