Isn't 'sleep sort' linear with respect to array size? O(n) sort achieved?
It is if you ignore how the underlying OS implements multitasking and sleep() in particular. And the kernel-side implementation usually involves some kind of priority queue of sleeping threads. So taken as a whole sleep-sort is just an convoluted implementation of heap-sort that outsources the actual sorting to OS.
In theory you could do this in hardware. Hardware timers are pretty trivial, you could imagine a hardware chip that accepts a number, then writes the value to the next free slot in an array when the time has elapsed. As timers go off, the array fills up. Obviously you need to handle collisions and whatnot but nothing in this screams that you need to go O(n^2).