This is because the kernel will start /sbin/init after linuxrc has
finished.
There's no reason at all why you would want to have init start from within
/linuxrc, is there? (At least, I haven't found any yet.)
If you want your RAM disk to be _the_ root, then echo its device number to
/proc/sys/kernel/real-root-dev before exiting from /linuxrc. You get the
device number (should be 0x1FF) by "ls -l /proc/self/root" (from /linuxrc,
of course).
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