Development never stopped. It just changed targets. Development is ongoing and secret hints of awesomeness are in flight. But that's beside the point. My point was to illustrate how a specialized OS of any type has advantages over Desktop operating systems on things other than desktops.
I assume you are referring to the Sys-V init process? While some distros still use this ancient (stable, and proven) boot process, others like Ubuntu have moved on to more modern event-based boot mechanisms such as Upstart which have proven to be quite fast.
LinuxICE had upstart but was using a sys-v-init compatibility layer for processes that weren't updated to use upstart. Later versions of Ubuntu fixed this and that is why you see considerable boot speed increases if you update LinuxICE.
If by 'archaic' you mean "loading processes from disk into memory, device detection, etc" then I don't see how windows or any modern operating system is different. None of that has changed much since the dawn of the modern computer on any operating system. Although, some OS's do things in different order to appear to boot quickly, ie the classic windows XP desktop appearing but being completely unusable for several more seconds until it finishes loading junk... or another one of my personal favorites, the input device detection that happens post login.
At any rate, if you have suggestions on how to make the boot process more optimized than the proven only-load-what-the-user-will-need method... I'm all ears

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