No - this can not be happening. They can't just go straight from Windows 3.11 to Windows 98 in less than two weeks. At this rate they will be running Windows 2180 by the summer. And I am not referring to the year but the version number.
I love emulation, I really do, but I can not imagine a practical purpose for running Windows 98 on a Nokia cell phone. Scratch that. I can't think of a practical purpose of running Windows 98 on anything. One good thing about emulating on a cell phone, though, is that they can give me a call when they start emulating a REAL OS.