The Viewpoints Research Institute fits the bill: http://www.vpri.org/

They want to replace the entire software industry, since it's all a huge hack (especially the 100m+ SLOC codebases that are way too common). Goal: a full GUI system (from kernel to applications) in 20k SLOC. Take a look at the progress reports they've made. They claim a 200 line TCP, 800 line graphics system (apparently comparable to Cairo), and lots of other neat stuff.