Now 'emerge -epv system' results in:
[blocks B ] <sys-apps/baselayout-2.0.0_rc (is blocking sys-apps/makedev-3.23.1)
eix sys-apps/baselayout:
[U] sys-apps/baselayout
Available versions: 1.11.15-r3 1.12.9-r2 (~)1.12.10-r3 (~)1.12.10-r4 [M](~)2.0.0_alpha4 [M](~)2.0.0_rc1 [M](~)2.0.0_rc2 [M](~)2.0.0_rc2-r1
Installed versions: 1.12.10-r3(03:35:12 PM 08/07/2007)(-bootstrap -build -static unicode)
Homepage: http://www.gentoo.org/
Description: Filesystem baselayout and init scripts
I haven't found a way around this yet. I ran 'equery depends' also and this doesn't look like a package to unmerge as it is part of my profile.