Ideally, I would like the web developer to have as much freedom as a developer for a native application - the freedom to choose a programming language and the ability to compile to a reasonably low level target for performance while still being cross-platform. Now, this somehow needs to be done without the security nightmares of ActiveX plugins. (Though, I dont see the non-security problems with a bunch of shared libraries stored on the browser. This is essentially what the OS does, and my goal is to replace the OS with the browser. Bandwidth will probably improve so that downloading libraries shouldn't be a problem and if not, the web site maintainer can still choose not to develop in a large library environment The popular ones will be cached in any case.)
You seem to be saying that the technical difficulties of doing this in a well-specified (memory and control-flow), secure and cross-platform way are intractable. Maybe this can be solved by moving the VM to a more abstract level.