Yes.
And no. Yes, Python is certainly feasible for current cellular telephones. I don't see it poised for explo- sive growth there, but neither for technical defects nor because of any lack of good wishes on my part. 'Twould thrill me to write more Python on embedded projects.
The one point I'd emphasize when thinking about this is that "embedded devices" covers a wide range, as I believe you already know. Some developers commonly work with hardware that's far, far more constrained than are cellular telephones; others, who also program embedded devices, can't be distinguished from vanilla Linux coders.