But, I'm happy to hear Open Source continues to make inroads into the embedded space. There's billions of devices out there that sometimes people's lives depend on running a terrifying array of proprietary and unmaintained software that is potentially broken in subtle (or not so subtle) ways.
Edit: Here's all the stuff about ports to a variety of awesome hardware: http://hitmen.c02.at/html/tools_contiki.html
You almost make it sound like proprietary per default is or can be broken while open source is not, that's a bridge too far :P
Don't forget that big companies like TI make money of both the hardware and the software (Code Composer Studio IDE which is used for pretty much all there DSPs etc) and do put lots of effort in making everything run properly. Anyway, bugs are everywhere.. Anecdote: I have used CCS for years while not encountering any problems at all, while in the same timespan I used open source toolsets I did find some bugs. Then again, same timespan in using other closed source toolsets there wre bugs as well so there's no clear winner imo.
Having said that CCS is based on Eclipse, at least when I used it a few years ago.
To me, this speaks volumes: it clearly shows that open source is as good (and in many cases better) than closed proprietary. Granted, as you said, code quality has more to do with the people behind the code than anything else, but it still stands that at least with open source, you're not SOL when (not if) something goes wrong.
Personally, I figure it might as well be; no way to fix it. I'd rather drive a beater that I know I can fix myself (or take to a local auto shop if I can't) if it breaks down than a high-end sports car that has to be taken to the dealer for something as trivial as an oil change.
No software is perfect (beyond a trivial "Hello, world!" exercise); that's why being able to look for and potentially fix flaws is important :)