Embedded can be a tiny little msp430 with RAM measured in bytes, or it can be the latest and greatest intel flagship - it's a description of how the chip is used more than the chip type.
As CPUs get more powerful in general, so too do the little development boards. I can spend $10 on a board with multiple cores and megabytes of ram to drive my blinky lights and do wifi - that's enough power to run a full unix.