Michael: Jodie, how's my schedule look for today? Jodie: You've got a conference and dinner party at the Japanese Embassy regarding wildlife protection. Michael: Oh, yeah...sorry, but I'll have to cancel that. I'm heading out to save America!
Yes, it looks like Microsoft is seeing the end of Windows CE coming and hopes this move will keep it alive for a wee bit longer, possibly improve it and make them look good.
The license itself is rather unimpressive - (I'm not sure if I read the actual CE one) it does not allow selling the software (making it non-free) and is strong copyleft, meaning that there is no way you can bend any terms.
I'm quite skeptical about the whole "shared source" business; it looks like some marketing gag by Microsoft. MS made sure with its licenses that the code could never be used by Wine, ReactOS or Mono, and, AFAICT, they never shared any source that hadn't been replaces already (WinCE -> Linux/..., Palm ; CLI/C# -> Mono ; Jscript -> Mozilla etc etc ; IronPython -> python, pypy, especially boo [python doesn't fit into .net ])