I think Ton hit it on the nose, but there a couple key points I disagree on.
Independent of price LabView is a far superior system for automation and embedded programming. However, there is the catch that without a license LabView will break the bank a few times over. Depending on your targeted platform, you could easily spend several thousand dollars for a development environment.
Both systems do have a compiler. For a while LabView was restricted to only a few embedded environments, but with the addition of an ARM compiler there are now a huge number of supported hardware systems. LabView is compiled in real time as you program, MSDS is compiled on request (as far as I know).
LabView is absolutely targeted to robotics. NI has put forth a lot of tools for robotic applications and many of the ideas taken from automation can be dropped right into a robotics setting. As an interesting note, the FIRST Robotics Competition exclusively uses NI hardware (the cRIO) and LabView is a popular programming option.
RDS's visual programming and LabView's visual programing aren't really comparable. They don't operate by the same paradigms.
RDS does create machine code and the code can run on a robot without intervention.
If you are looking to buy a complete robotics system for development with LabView check out this page: http://www.ni.com/robotics/how_to_buy.htm
Just as a bit of background, I am a certified LabView developer and have used RDS with the lego NXT system as an instructor.