If I understand things right, this is what MorphOS did with abox, and look what happened - abox is all there is, and little has changed.
Well not really. Abox is there but has more or less direct access to teh hw (drivers are inside teh ABOX). Th eprob is not Abox itself, but lack of Qbox and lack of drivers for virtualized hardware that Abox would need to use then if fully boxed.
But we all know that Qbox will probably never come. If the developers really had too much time I think it would be wise to consider a kind of "Qbox reloaded" to cope with an ISA switch, 64 bit migration, SMP, full resource tracking and maybe, maybee not MP and some other nice stuff. But probably the developers have a life and not the required time...