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The gains seem to not have been high enough to sustain that project. Nowadays CPUs plan, fuse and reorder so much of micro-code that lower-level languages can sort of be considered virtual as well.
But Java and similar languages extract more freedom-of-operation from the programmer to the runtime: no memory address shenanigans, richer types, and to some extent immutability and sealed chunks of code. All these could be picked up and turned into more performance by the hardware; with some help from the compiler. Sort of like SQL being a 4th-gen language, letting the runtime collect statistics and chose the best course of execution (if you squint at it in the dark with colored glasses)
More recent work about this is to be found on the RISC-V J extension [1], still to be formalized and picked up by the industry. Three features could help dynamic languages:
* Pointer masking: you can fit a lot in the unused higher bits of an address. Some GCs use them to annotate memory (refered-to/visited/unvisited/etc.), but you have to mask them. A hardware assisted mask could help a lot.
* Memory tagging: Helps with security, helps with bounds-checking
* More control over instruction caches
It is sort of stale at the moment, and if you track down the people working on it they've been reassigned to the AI-accelerator craze. But it's going to come back, as Moore's law continues to end and Java's TCO will again be at the top of the bean-counter's stack.
[1] https://github.com/riscv/riscv-j-extension