There is no need to dynamically load any code on these type of devices, you would generally just use eXecute-In-Place (XIP). The type of applications you develop for these devices simply do not require UNIX like features (multi-user, etc). Many more appropriate OS'es exist for this to be taken seriously.
https://www.tuhs.org/Archive/Distributions/Research/Document...
There's lots of outrageous stuff inside today's consumer products. What makes you so sure that this won't be used in a real (whatever that means) IoT or IIoT device by someone?
For example... it can work in 128KB RAM. If you're using 128KB just to run the OS, thats completely wasted RAM that could be used by your application. This really counts when you're making 100'000 of these devices and are paying for every byte. You don't waste valuable resources on desktop-level abstractions. That would make for a very expensive product.