The dedicated application/server is such a powerful idea and security is such a big problem that perhaps some time in the future people will see the idea of "directly putting an operating system on the Internet" as risky madness. All development environments that matter will somehow come to support creation of dedicated application/servers.

There is nothing stopping someone from doing something similar in a different language.

I made a start on modifying Movitz to build a Lisp system that would run on top of Xen.