Well... this echoes ZeroVM ideas but so is PiCloud and a few others mentioned here. I think it goes without doubt that current OSes and VMs are not best suited for cloud technologies. How they can be? The were designed to completely different requirements.

sorry i deleted the post because i thought it was not useful. i was referring to this article http://highscalability.com/blog/2010/10/21/machine-vm-cloud-...