Linus is merely engaging in the tried and true technique of "always blame your 
opponent for your own faults first".  We saw a lot of this during the recent 
US election.

The fact is, there are a ton of separate, distinct, and quite different Linux 
kernels for all sorts of purposes.  There are uCLinux and MontaVista Linux 
for embedded applications.  IBM has an extensive set of kernel changes, 
including a complete rewrite of the scheduler, for the S/370 port they 
distribute.  Each distribution (RedHat, SuSE, et al) has their own set of 
kernel patches.  Etc.

He's full of shit, but if he keeps spouting the line, everyone will think his 
house is clean.