First take: Oh, Google, what are you doing this time? Second take: Wait, the guy behind V8 is working on this... Hm, I'll have to take a look.
It sounds like Lars himself may not have tons of expertise creating a language, but teaming up with someone who does and throwing in his own expertise getting it to run fast in a browser... might be interesting.
However, is there a concern here that only Chrome will support it for a while? Then anything you write in it will be Chrome only. Isn't that kind of like the bad old days when each browser had its own tags and whatnot?