I also believe that that decision was correct. But having a mobile (base) distribution seems to be well in Redhat's interests. It's a case where they can sell support to world's biggest companies by just doing what they are currently doing. There is no end-user interaction in mobile OS market, nor such a diversity and good-support is heavily needed. Redhat can support both base system and kernel/hardware and is sure the best (and perhaps the only) company that can do that.