Is that supposed to imply linux can't? Or that linux plus a GNU subsystem can't? I've personally run it on a lot lower end hardware than that seems to be.
Different markets really, sounds like Microsoft is targeting items like internet connected cameras (think Mirai endpoints). Where as Amazon is targeting low power prolific devices, eg. IoT buttons.
You're starting to see devices like the Renesas RZ/A1H that has 10MiB of SDRAM on the die and can boot Linux out of a single cheap QSPI memory part.
Regular Linux can't. uCLinux might.
You can run regular Linux on these, you just probably don't want to.