As a practical matter, it can't be 100% Java. There needs to be some kind of bootstrap or microkernel for the lowest level stuff to build upon. But one can make an operating system that is nearly all Java. (Well hey; Unix/Linux is/was *mostly* C.)
wrong. It can be done if you pick or design the right hardware (effectively you'd be implementing the JVM microkernel in hardware, this has been done) :)