Its sucessor, Inferno, has been bougth by Vita Nuova and they target it at embedded devices.

http://www.vitanuova.com/inferno/index.html

http://doc.cat-v.org/inferno/

No it's both a server and a desktop OS. The architecture semi-requires the ability to be both cooked in. In my usecase I have my terminals which are desktops that boot off of my main fileserver.