Hmm, I don't think there is any dominant MCU architecture in the embedded market (at least not in the sense that the ia32 dominates the desktop market). IMO, that the x86 is being used in embedded devices at all is some kind of spillover-effect from the desktop market: a plethora of tools and stuff available for cheap, etc. Interestingly, I would rate the more successful architectures in the embedded market (e.g. ARM, PPC, MIPS, 68k) to be all far more "elegant" than ia32. But that of course depends on what one considers to be elegant. For me, it means achieving a goal in a well thought-through way, without clumsy kludges or work-arounds. That, applied to an MCU architecture apparently translates to achieving a certain functionality with less transistors per square millimeter which is the key reason why these architectures are successful in the embedded market.
So, apparently, technical elegance does sometimes pay, *especially* in the embedded market. This may be because the people making decisions in the embedded market tend to be more technically knowledgable than the average computer user (just look at the people frequenting this newsgroup!) and are not so easily caught by FUD campaigns.
Rob