I feel like there's a potentially large audience for a kernel that targets running in a VM. For a lot of workloads, a simple VM kernel could be a win.
It doesn't matter how the language gets deployed, if the runtime is on a container, a distroless container, or directly running on an hypervisor.
The runtime provides enough OS like services for the programming language purposes.
Provided you have virtio support you are ticking a lot of boxes already.