The reason to do this, beyond the inherently neat Inception factor, is that JVMs are a PITA to work on because they're normally written in languages like C++ or Rust which optimize for performance and manual control over productivity. That makes it hard to experiment with new JVM features or changed semantics. If you could write a JVM in a high level very productive language like Java (or Kotlin or Scala) then the productivity of people writing and experimenting with JVMs would go up. It would also make it feasible for "ordinary" Java devs to actually fork the JVM and modify it to better suit their app, at least in some cases.
There's also something conceptually cleaner about having a language and its runtime implemented purely in itself. As long as you don't mind the circularity, that is.
Espresso for example has hot-swap features HotSpot doesn't have, so you can modify your program as it's running in more flexible ways than what regular Java allows.
It all adds up.
But I don't have enough experience with Rust to really have formed an opinion on that yet.
The borrow checker slowed me down a lot at the start but these days it's not a big deal. Eventually you internalize the easiest ways to make it happy (clone and pass references as needed) and can reserve tricky optimizations for hot paths where they actually matter.
I would say that today, most of the times I sit down to write some Rust I'm nearly as productive as in higher-level languages... but then ~20% of the time I get bogged down in complicated type signature stuff (especially with async code, ugh) and it's a time suck.
But IMO it's very worth it. What do you get out of wrestling with the unholy, fractured C/C++ ecosystem? The privilege of being able to _use other people's code_. You get that without much hassle in Rust.
Seems like a reasonable goal.