After investing lots of time and money into creating a JM, the companies were chagrined to find a general purpose processor with a good JVM (especially with JIT) could run circles around a direct-execution processor.
I'll propose an alternative, fix JavaScript by adding APIs like ByteArrays and shorts and a proper int to the language. Over time, JS could become an excellent IL. We can standardize on intermediate bytecode, but like all things in web adoption, it will probably be the path of least resistance that works. (Who would ever give HTML graphic, multimedia, and threading abilities?)
They've been slowly withering away for the past couple of years (at least judging by the number of cars in their parking lot - I work in the building they are in). They just announced a cloud-based product based on their systems, so maybe there's still some life there.