Seems cool, but what is the practical application for this?
You can script applications using their ARexx interface without having ARexx in the system. You know MorphOS has no ARexx. One can install 68k ARexx from AmigaOS, but with Lua 0.5 you do not need it.
I also think a possibility to debug scripts at source level is interesting. An interface to MUI is planned too, so you can write applications in Lua.
I can also add that Lua allows for object oriented programming and metaprogramming - things you can hardly achieve with ARexx.