Actually there are several examples of running Windows from a CF card and even USB flash drives out there,
...
But we are still looking at years of use ...
Years? Maybe, but not necessarily.
I've seen usb flash drives fail ASTONISHINGLY quickly. Just to give you an example, the last time I saw this happen I was using a USB flash drive to log some data. I was writing a log record 12 times an hour, 24 hours a day, 7 days a week. The USB flash drive failed in less than 90 days.
It's not the only time I've seen USB flash drives fail in use, either.
For a thin client, you can use a proper SSD (even an ATA SSD, if that's how the thin client machine is configured) and you'll get many years of reliability. I run 3 thin client machines with Windows XP Embedded, all of which run 24 x 365. The only time they stop are for power failures. One has run non-stop for over a year at a time.
Windows Embedded is *extremely* reliable. And on the right thin client, it makes for an excellent streaming platform. OTOH, using a thin client is a bit of a hobby venture. It requires you to learn about configuring and managing thin client systems. If you find that sort of thing amusing, I'd highly recommend it. If you just want something to work reliably, I'd steer you away from the thin client approach.
Peter
K1PGV