And in Smalltalk, applications lived in the image and were difficult to extract from it. They didn't work well with code outside the image.
That was a bigger deal when the Desktop was King. It might actually be an advantage for web applications: Everything in the image is trusted in your security model and nothing much from the outside can get in. Run the image in a virtual machine (think Xen) to enhance the iron box effect.
> Code stored like git stores data, with hashes and version control.
I don't... we already have git. What could be more 'like git' than git?
> Once you're about to type those in, though, you should be having a conversation with the computer, as opposed to sending a series of tokens into a black box and wondering if it understood what you meant.
There has been some slight work done towards visual development, where you create 'circuit-diagram software': wire up logical components with visual control flow (or visual data flow, perhaps). It never seems to catch on.