Seriously? the JVM? You listed the pros, but what about all the cons? Modern JVMs are fast, but highly specialized for long-running applications, which web pages are decidedly not. That's just the tip of the iceberg.
> time java HelloWorld
Hello, World!
java HelloWorld 0.28s user 0.06s system 135% cpu 0.248 total
In any case, the JVM is just an example (although I still argue it can serve this purpose well). My main point is that the "correct" model for the web is a bytecode-running VM inside every browser that lets you do everything javascript does through APIs.