Dang, and people complain about Windows and OSx being bloated :-)
Seriously though, interesting, but daaaamn,... really needs some work. It's little more than a bunch of files thrown together. Not really what Id call a distro as such.
The same content and functionality could be offered for a few hundred meg.
Desperately needs optimising.
The Linux/host side is interesting though. Would be cool to see it get used with a proper distro.