Here is what Andy Wingo had to say on the subject[1]:
Guile can implement Emacs Lisp better than Emacs can.
We can compile Emacs Lisp to Guile's VM, and make C shims to present a suitably compatible C interface to the rest of Emacs' C primitives.
No one will notice! Except that after a switch, Emacs would be faster, more powerful, and have the ability to access all of Guile's facilities -- the Scheme language, other languages implemented for Guile (Javascript, Lua, ...), a proper ffi, dynamically loadable libraries, a module system, the numeric tower (rationals, bignums, etc), Guile's existing libraries, delimited continuations (!), fast bytevector access, native threads, etc.
On a language level, I am convinced that not only can Guile implement Emacs Lisp, but it can provide a coherent story for tight interaction between e.g. minor modes in Javascript and Scheme and Elisp, etc. More details will come later, though feel free to bring up specific points.
There have been some suggestions on the list that "Guile people want to rewrite Emacs in Scheme". Though Scheme does have some facilities to offer, personally I do not believe in rewriting software. I've failed enough times, thank-you-very-much -- and if we could retrofit a compiler into Guile in two years via correctness-preserving transformations, surely we can replace the implementation of Elisp without causing problems.
My goal is to make it the obvious decision for the Emacs maintainers to say, "yes, let's switch to Guile's implementation of elisp, because it will make Emacs better and have no drawbacks". We're not there yet -- and that's why I wanted to put off this mail -- but we'll get there.
[1] - https://lists.gnu.org/archive/html/emacs-devel/2010-04/msg00...