It looks like there's a new Smalltalk intended for embedded applications called Athena Smalltalk.

Alexandre Bergel has just announced on the Squeak Dev mailing list his work on Athena, a new Smalltalk environment intended to be embedded in Java programs. Athena comprises a set of tools to use the Smalltalk programming language in an embedded setting. It offers a small (100kB) virtual machine written in Java, a shell, and a set of tools to program Athena from Squeak. The Athena VM is based on work done by Timothy A. Budd on Smallworld, and is released under the MIT licence.