Wouldn't you face the same problem as Dotnet on Windows? AFAIK, dotnet based frameworks and apps suffered from huge performance issues. It might have improved in recent times, I am not actually a windows dev.

If just the end user application is in Lua, then maybe it's fine and the high level language slowdown won't matter. If you want to wrap the low level kernel APIs etc in a high level language as the canonical interface, I would be very skeptical.

I’m not sure the ‘language slowdown’ is as significant as one might think, given the common shared libs that would be in place with a one-size-fits-all solution, but its really all just a dream until someone does it, anyway.

Dotnet is pretty fast these days. It has a lot more low level control than something like Java, with value types and manual memory management available (it invented the unsafe{} blocks Rust is famous for).

MS even had a prototype version of Windows where the entire OS from the kernel up was managed code (a little excessive, IMO).

Dotnet GUI apps failed on Windows mostly because their UI toolkits are a mess and Electron won the cross platform war. I avoid this stack like the plague, but I write a lot of web backends in C#/ASP.NET (on Linux deploying to k8s) and it's great!