Check out Jeff Lindsay's Apptron (https://github.com/tractordev/apptron), comes very close to this, and is some great tech all on its own.
Apptron uses v86 because its fast. Would love it for somebody to add 64-bit support to v86. However, Apptron is not tied to v86. We could add Bochs like c2w or even JSLinux for 64-bit, I just don't think it will be fast enough to be useful for most.
Apptron is built on Wanix, which is sort of like a Plan9-inspired ... micro hypervisor? Looking forward to a future where it ties different environments/OS's together. https://www.youtube.com/watch?v=kGBeT8lwbo0