CONCLUSION:

It appears the choice to use SQL CE was a design decision and not a design requirement. The Backup/Restore History that is retained by SQL CE on each SQL Server is cached on that server until its time to purge the backup/restore history. SQL CE does not serve as a temporary store for this information as is implied. AS best as I can tell SQL CE duplicates (and may even expand upon) the backup and restore history that is already stored in the msdb system Database.

While this use of SQL CE may serve as a desirable option for the right customer I can see no reasonable argument for why it has to be a requirement.

Based on the limited number of responses I'm guessing few believe that this requirement to install SQL CE is that big a deal. If that's not true and you believe that this is something that RedGate should not be requiring then take the time to let them know. They have always been very receptive to any input I've given and I believe that this is a chance to correct a mistake taken with what is rated as 2013's #1 SQL backup solution.