I hesitate to call something like this an operating system but it's pretty cool.
<humor> Why not? If Microsoft can call Windows versions before Win 95 an operating system, I think this qualifies. ;-) </humor>
In all seriousness, if there's no task scheduler or multitasking capabilities in this software (and I must admit I haven't poked at it enough to determine whether there is or not), it's not much of an operating system. It kind of reminds me of when I was 12 and thought I'd make an "operating system" using QBasic. (What I ended up with was little more than a glorified text-based, menu-driven program launcher. But, hey, I was 12.)
Nifty, unix-like command-line interface in Javascript.