When you say "embedded development", keep in mind that you have to consider the scale of the project.
When programming something on the scale of a microcontroller or the firmware for an ASIC, you tend to see C and assembly dominate the scene. Embedded developers tend to "specialize" in these languages since compilers for them are available for nearly every embedded target platform. If your project migrates from, say, a chip with a PowerPC core to a chip with an ARM core, you can be fairly confident that your C code will not be overly difficult to port over. Some chips do have compilers available for other languages, but typically they do not match the C compiler in terms of efficiency of the resulting binary. Since embedded systems are often low on resources, system designers want to make their code as efficient as possible (also one reason why you see a lot of assembly language code). I have seen development tools available for languages such as C++, Pascal, Basic, and others, but they are typically niche tools that are not mature enough to match the efficiency of the available C compilers. Debugging tools for these languages also tend to be harder to find than what is available for C/assembly.
You also mentioned set-top boxes. Embedded systems on this scale can pack the equivalent power of a desktop computer from 7-8 years ago. Their available RAM, storage space, and processing power allows them to run full-featured operating systems and interpreters for higher-level languages. On these more powerful systems you will still see C and assembly language being used (for driver code, if nothing else), but other languages (such as Java, Lua, Tcl, Ruby, etc) are becoming more and more common. Using interpreted languages makes porting code from one platform to another even easier, as long as the platform has sufficient resources to handle the overhead of the language interpreter. Any low-level code that interfaces directly with hardware (drivers) with still typically use assembly or C since high-level languages don't always have the capability to do this sort of thing. Anything running as an application on top of the embedded operating system can usually be developed and tested inside an emulator or virtual machine, and so you will see a lot of code being developed in whatever language the developer happens to be comfortable with.
TLDR version: C is popular because is it a versatile language that nearly all developers are familiar with. Assembly is popular because it allows for low-level hardware access in ways that would otherwise be difficult or impossible. Interpreted/scripted languages such as Java are becoming more popular, but the resource requirements of the interpreters for these languages may be too much for some embedded systems to handle. The quality and variety of development/debugging tools availability for the C and assembly languages also makes these options attractive.