What would that provide? You'd have a processor that exists that would have one (and only one) operating system that can run on it and everyone else (except for some of the 'linux on everything' types) would ignore.

This is the sparc and sun or MIPS and Irix all over again... except this time without any viable business model to keep moving forward and progressing on hardware or software.

So what if they make their processor that is free from all known processor level bugs. Would that mean dropping support for all the other processors? or would they still need to be aware of the processor bugs that exist in other architectures that they'd still be expected to create patches for? Would they have the resources to fix processor bugs in their own design when they are discovered?

My read on this is that it doesn't make any sense for an operating system organization that lacks any financials to try to pursue custom hardware.