Another reason might be speed. The virtual machine is 20 to 40 times faster than PHP interpreter or Flash Classic VM. That helps you serve a
The effects of a server VM being faster than the old version of a client VM (Flash classic) is a Hard Thing to Assess :) But, of course, sounds great compared to PHP. Have you tested PHP with the Zend Accelerator or any of the free accelerators?
A language is not just syntax, it's also architecture and a type system. For example you will be able to do some kind of remoting by sending Classes (not just anonymous objects) between the client and the server.
And this precisely is the issue, because you're trying to provide common architecture and type system over 4 different VM-s (JS, F8.5, F Classic, your server mod). It'll be an interesting effort to follow.
I don't doubt the theoretical ability of any turing complete system to emulate another, but by the practical limitations imposed by the solution.
Also we've seen how "layering" of new paradigms over old engines works with AS2, where all the compiler checks were superficial and easily worked around at author or runtime.
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