It's certainly an interesting idea and I'm not wholly opposed to it, though I certainly wouldn't use it as a default process scheduler for an OS (not that you were suggesting that). I would be very concerned about security stuff. If there's no process boundary saying that threadproc A can't grab threadproc B's memory, there could pretty easily be unintended leakages of potentially sensitive data.

Still, I actually do think there could be an advantage to this if you know you can trust the executables, and if the executables don't share any memory; if you know that you're not sharing memory, and you're only grabbing memory with malloc and the like, then there is an argument to be made that there's no need for the extra process overhead.