IIRC the SDK consisted of a (limited) C compiler that produced bytecode that the Cybiko ran in a virtual machine. The VM was intended to future-proof the device in case they decided to switch CPU architectures somewhere down the line. A little over-engineered, given its eventual fate.
We got hold of the source code for the Cybiko's web browser because we wanted to do something similar. A PC ran a server component and did all of the hard work interacting with the internet and parsing HTML, while the Cybiko ran a client that connected to the PC over its RF hardware. In the end we didn't get very far - it was my first C project, the SDK wasn't great, and the browser source was written in Russian.
I still have two unopened Xtremes somewhere.