That’s the idea behind the emerging concept of the Cloud Operating System. Integrate the JVM into the OS kernel. Strip out everything in the OS that the hypervisor is taking care of (like network access) or that the JVM doesn’t need. What you end up with is an lean mean runtime-specific machine that runs much faster than a normal VM, and is more secure as well, simply because there is much less of it to hack.
Read the entire post at http://www.devx.com/blog/agile/cloud-operating-systems-the-next-big-thing.html.