It was surprising to know that "Intel switches from Ubuntu to Fedora for Mobile Linux" .
I got this info at PLUG mailing list -> http://www.plug.org.in/pipermail/plug-mail/2008-July/004691.html
"Chip manufacturer Intel wants to use parts of the Fedora Project Linux distribution instead of Ubuntu as the basis for the second version of Moblin (Mobile & Internet Linux Project)."
"Intel is keen on using a Linux distribution that uses RPM packages and package management software. Hohndel pointed out that RPM packages include licence information; the DEB package management as used by Ubuntu and Debian doesn't have this information in the package files. By having licence information available, developers can create software collections by licence type or exclude software with certain types of licences."
After little investigation I get to know that there is BLOG by Dirk Hohndel which mention this -> http://www.hohndel.org/communitymatters/moblin/moblin-at-oscon/
["The article in the register is not only low on detail, it's also high in content that's made up or blown out of proportion.
But to your question. Moblin 1 (which is mostly being discussed on moblin-dev at this point) will of course stay a .deb based distribution. So there's no change there and no impact on Ubuntu Mobile Edition, which is based on Moblin 1.
With Moblin 2 (which we have talked about in the playground, but not put out to our community, yet - which is why there's no discussion on this on moblin-dev) we decided to move to an rpm based distribution as that gave us better build tools and most importantly a better way to manage the licenses under which the individual packages are released.
This had been discussed with Ubuntu and as far as I know they will pull from our repositories and continue to create a Mobile Edition. That's the beauty of open source."]
So my conclusion is that Moblin development for Ubuntu and Fedora will be continue.