I haven't had time to read the original message so I may have missed something important, but I fail to see what's the actual use case in having LUA VM inside the kernel. (Beyond the cool factor)
Though at least from security point of view is far easier to protect the kernel from a non binary kernel module (be that LUA or Phyton) that from a C/C++ binary module. (as long as you don't care about performance)
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