Like I said, "instant on" means instantly. And the load time of this Linux distro is far greater that 2 seconds. So yes, it IS a long time when compared to "instant" which is what they're calling it....probably someone in the sales department pushing that term as opposed to the R&D team.
As for your iPod taking so long to boot, you should try different hardware. I have a USB-stick that plays MP3s and it is truly instant on. As soon as it's powered up, it will play whatever song I choose and no waiting for anything.