For some reason people equate “compatible with Windows CE” stickers with “runs Windows CE when you turn it on”
It doesn’t by default boot to CE. It /is/ an option though. But it doesn’t boot it from an internal ROM.
CE was a very lightweight OS that was mostly nice for making it easier to port drivers and apps from one embedded system to another
Maybe Sega had some vague plans to turn the Dreamcast into a multipurpose family computer?
It had a ton of potential. The hardware is still fast enough to do basic browsing etc without issue if it had an updated browser.
It’s not very intuitive that CE is merely available as an SDK option, and that it is only included in the boot media if developer wishes to do so.
Also slightly disappointing that it could have been the first console that don’t need to go through reset/reboot when changing games, though that would have been too ahead of its time.