Then every time there's advancements in what you have available, people add all the niceties back. And at this point it is not embedded anymore. It's just a low power full device. Just like java for the MSP430 (like anyone would spend $7.99 per chip for a TV remote with 2week batteries, instead of $0.004 and 2+month)
True embedded development usually doesn't even have room for a watchdog timer. let alone virtualization and memory protection.
This is not new. This is not embedded. This is just the usual cycle of hardware generation changing and people in academia ivory tower (or worse, google solid gold tower) having nicer toys than everyone else.