Well, it's a mass-produced, embedded device, designed to do one specific task. I guess lots of the video related stuff is assisted by hardware and they usually strip down the embedded Linux to the minimum needed. Because every Megabyte of storage costs extra and they need to hit some 99,- or 89,- price point. Furthermore, they don't want it to boot for 20 seconds, so these devices generally don't contain any extras. Similar things happen on wifi routers, the ones below $100 usually contain similar amounts of memory (or less). At least the last time I bought one.