I started writing this as a response to chromatic's post at his Modern Perl blog. Short version: I think that the VM will be no problem for Moe, Stevan Little's new project to bring a Perl (or dialect) to the JVM.
Overall, I think chromatic's points are very good, and I agree with many of them, especially in the "What Moe Could Produce" section.
But I disagree with one point, in that the JVM has (at least to me) proven that it is an excellent platform for hosting dynamic languages. Well, at least one dynamic language.