I think Fuchsia and KataOS server different purposes. If I read this announcement correctly, KataOS is aimed more at smart light bulbs and such whereas Fuchsia is aimed at relatively powerful devices with a UI (thermostats, smart clocks, etc.) or with significant processing capabilities (Google Home and other smart speakers).
The Github page for Sparrow is counting RAM usage in megabytes with decimals, I don think Fuchsia will even run with less than 30MB of RAM. Their example for OOM events shows a device with 8GB of RAM, though I find it doubtful that even Google's hardware is that wasteful with system resources.