Recently I have had email and physical discussions on the merit (or lack of from some perspectives) of Agile Project Management in developing embedded products.  I think the discussion is more about what is the correct tool for the job at hand.  I have been part of agile managed projects that have delivered wonderfully.  In fact, this team was much smaller than the other teams performing the same work for other sites around the globe.  It was a small team, well focused and with the variety of talents required for a self-contained cross functional development team.

The agile approach is not a panacea for product development woes. It is a tool that should be used within the right organization, the correct scope and appropriately skilled team members.