While C4 does currently require OS enhancements, they could make it without it, it would just be slower. However the problem that Azul has tried to overcome with the OS could have been much more powerful attacked with the full force of oracle/sun behind it. They once put some linux patches but it was never there focus and it never went upstream.
At a big company this technogoly could have had a bigger impact, they could have talked to microsoft, apple and the linux team. I know that Azul also tried to strike up a conversation with Intel but in there words "it was like moving a mountain".
And im not suggesting Sun/Oracle should have done this for the greater good of all humans. They would would have created a gigantig benefit for java products over the competition C# and C++ in the server space.
I rember talks by Cliff Click that mentioned that they were really suprised that Sun did not have more intresst in them, considering some simple things that Sun could have to get huge increses in some of the high end server systems they were selling (am searching for the refernce ...).
Edit: See Cliff Click talk about intel and sun.
http://www.youtube.com/watch?v=5uljtqyBLxI& t=54m33s
He mentions that the sun shareholders should put there exutive staff into prison.