In order for this to fly it's a ground up rewrite of fundamental principles of hardware.
For example, how on earth would paging work in such a world? Who or what would be in charge of swapping memory?
How would a system admin go about killing an errant process?
How would a developer code on such a machine that allows for no inspection of remote application memory.
Beyond that, seems like instead of decreasing the amount of trust needed to function, it increases it with every hardware manufacture. All while making fixing security holes harder (since they are now part of the hardware itself.)
Imagine, for example, your ram having a bug that allows you to access memory regions outside of what you are privileged to do.
It's a nice idea, but I think google's zircon microkernel approach is far more practical while being nearly as secure and not requiring special purpose hardware.