Some companies and projects are doing a good job of staying close to mainline, and the issue for them will be that 2.6.35 will indeed start to fall behind where they want to be, soon. For example, Google has been pushing hard to catch up to mainline, and although they will have a release based on 2.6.35, they probably won't stay there long. The same goes for other forward-moving projects that are staying close to mainline (MeeGo and Linaro).
However, for a large segment of the embedded industry, just getting different companies moved up to 2.6.35 (within 1 version of mainline), and synchronized on a single release, will be a really big improvement. At the summit, CE vendors had kernel versions spread all over the place between 2.6.11 and 2.6.32.