The analysis in CNet doesn't make a lot of sense to me. According to it the two things that Cisco lacks to really win developers are x86 and Windows.net compatibility. WTF?
Apparently this is not really Linux running in the router itself (naturally) - but inside the Cisco Application eXtension Platform (AXP), which "is a Linux server blade that plugs into Cisco routers and runs a Cisco hardened Linux running a 2.6 kernel." (according to http://news.cnet.com/8301-13505_3-10113633-16.html ).
So this is not bad, but since the AXP is additional and not every router has it I don't see how it is that different from an ordinary Linux box/blade/etc. Just this one is manufactured by Cisco.