The part of the article where Probert discusses the operating system becoming something like a hypervisor reminds me of the Cache Kernel from a Stanford University paper back in 1994. http://www-dsg.stanford.edu/papers/cachekernel/main.html
The way I understand it, the cache kernel in kernel mode doesn't really have built-in policy for traditional OS tasks like scheduing or resource management. It just serves as a cache for loading and unloading for things like addresses spaces and threads and making them active. The policy for working with these things comes from separate application kernels in user mode and kernel objects that are loaded by the cache kernel.
There's also a 1997 MIT paper on exokernels (http://pdos.csail.mit.edu/papers/exo-sosp97/exo-sosp97.html). The idea is separating the responsibility of management from the responsibility of protection. The exokernel knows how to protect resources and the application knows how to make them sing. In the paper, they build a webserver on this architecture and it performs very well.
Both of these papers have research operating systems that demonstate specialized "native" applications running alongside unmodified UNIX applications running on UNIX emulators. That would suggest rebuilding an operating system in one of these styles wouldn't entail throwing out all the existing software or immediately forcing a new programming model on developers who aren't ready.
Microsoft used to talk about "personalities" in NT. It had subsystems for OS/2 1.x, WIn16, and Win32 that would allow apps from OS/2 (character mode), Windows 3.1 and Windows NT running as peers on top of the NT kernel. Perhaps someday the subsystems come back, some as OS personalities running traditional apps, and some as whole applications with resource management policy in their own right. Notepad might just run on the Win32 subsystem, but Photoshop might be interested in managing its own memory as well as disk space.
The mid-90s were fun for OS research, weren't they? :)