Yep, definitely is some kind of hard-coded path pointing to (hd0,0) or similar, and for the record, why do you think that original Linux was called EXT2FS?

When it came out the idea was being able to install and run it from a logical volume inside Extended.
The only OS that actually needs being on First Primary is DOS, even Windows 9x/Me, with some tricks could be installed on an extended partition, (keeping of course IO.SYS, MSDOS.SYS, COMMAND.COM on C: )
FYI:
http://www.allensmith.net/OS/XOSL/II.htm#II1QUOTE
How to install or run Windows 9x on a logical partition?
It's not possible to install Windows 9x on a logical partition directly because of the "SU 013 Error". But, wait, there are possibilities for that, although they are tricky
And a word of caution when using several Primary partitions and DOS/Win9x/ME:
http://www.allensmith.net/OS/XOSL/I.htmQUOTE
Microsoft Operating Systems MS-DOS through Windows 98 or even Windows ME have a bug where, if the last logical partition in the extended partition is not a recognized file system type, and multiple visible FAT primary partitions exist, it will use the last logical partition as a FAT one in place of the next primary partition. But it will think the size of the partition is that of the primary partition. Data coruption can occur!
jaclaz