HHVM exists. You can benchmark it against Python and Ruby today. What are the results?
In any case, Python has things like cx_freeze that can be used to make apps close to compiled performance. And Python is not a single monolithic implementation. IronPython running on .NET for instance. PyPy has a VM with JIT.
In any case, few people these days are worried about raw performance of apps. There are easier things to fix with page load times, getting rid of resource locking, and so on.
HHVM will extend PHP's useful lifetime but outside of Facebook, Drupal-based sites, and WordPress-based sites, I don't see it growing in any significant way.
Performance oriented pythonners go with pypy, numpy, cython, numba, etc. Each of them gives a very significant speed boost.
I have no idea how "good" "normal" PHP code is written compared to Ruby/Python.
There was a measurable performance increase, but it was disappointing overall. Perhaps my initial hopes were too high.
Our company is small and engineering/ops resources are very limited, leading to a lot of pragmatic decisions. After a few days of experimentation, I decided that HHVM was promising, but for us it's not yet worth the extra ops infrastructure.
We get much bigger improvements tuning other pieces of our stack.