Back in 2005, I installed SuSe on an s/390 box. If you could throw a lot of memory at it or MIPs, then it would run pretty well, and could be used as a file or email server. But anything that crunched data was horribly slow. Can't say that it's any better now, but if it's utilizing the zIIP, I'm sure it's miles above where it was 10 years ago.
Still, pretty high cost of ownership on the mainframe to get this. I can't imagine many people buying a million dollar mainframe just to run Linux. Seems like those who have a mainframe already would have been like us: let's partition out a Linux instance and try it out.