From what I understand it is still alive; new release planned for 2011 according to http://en.wikipedia.org/wiki/Windows_CE#Versions. However I do not know how big the market is these days and where it is going.
The application I am looking at is a mobile data terminal using one of these puppies (http://www.qsicorp.com/product/vehicle/treq-m4.php). The UI is relatively straightforward, however it would be nice to use JUCE to build the system for convenience and simplicity.
The only variable there is how much of the Win32 API that JUCE expects is implemented. Once I have the dev tools up and going I will take a stab at porting across and see what the issues are.