There's a 60% chance that the sentiments expressed in the above post are not sincere, and the insincerity of said statements is proportional to the perceived retardation of the sentiment, and inversely proportional to the intelligence of the reader should he or she find the sentiment less than intelligent.
Basically, Sega and Microsoft worked together to make sure that there were WinCE-compatible game libraries and dev tools for the Dreamcast. There was no requirement to use them, though. While they weren't as fast/optimized as coding using Sega's APIs, decent performance could still be realized. Sega Rally 2 isn't the best performer, but it's fun and looks good enough for me. It was a WinCE game.
Sounds like they liked how the last gen hardware worked out. Lindenburg or whatever was essentially a multicore PC somewhere close in power to an Xbox 360 or PS3. I imagine the hardware is being developed for an entire generation of games from Sega. Hopefully it is "halfway" in between generations like Lindenburg was and will give us a peek at what graphics might look like next gen.