Japan tried to build an operating system for the entire world, then the US government intervened
(www.xda-developers.com)
In fact, this LinuxInsider article from 2003 calls ITRON "the most popular operating system in the world," and while nobody has published hard numbers since, the Yomiuri series reported that TRON-based operating systems still run in roughly 60% of the world's embedded devices.
I wouldn't exactly call that a "screeching halt".
Thanks for the article, though, that was an interesting read!