Embed the Power of Lua into NginX https://github.com/chaoslawful/lua-nginx-module
And if the server is not high-performing, mongrel2 + $something can be a very good choice. (And has a more liberal license).
But of course, the tastes differ - so the more, the merrier. as soon as the folks do not get pwned.
But yeah, LuaJIT recently added support PPC and soon will add ARM, so point well taken - to do what I'm thinking of, it may not really be necessary to have anything in C.
What I'd really like to see is not so much a web framework in Lua (there are a few, I'm working on another one, and it's really not hard to make one either), but rather one that's mostly C but lets you use Lua, say, for templates or controller functions. That could be pretty interesting for very small devices, or for squeezing lots of performance out of a larger one, all while stilling letting you program the bulk of your code in a higher level language.