It seems that they are trying to create an architecture with all components compartmentalized, but it says it can run Linux and Windows so I'm guessing it's virtualizing something at some point.
Also, they say they have a reference implementation of the architecture, so I guess the real work is defining that architecture and making an API compatible with what modern OS's do so later on they can jump on board and make it Genode compatible?
It sounds very interesting but it feels like I'm misunderstanding a lot and thus hitting a wall here due to lack of knowledge so any pointers are appreciated :)
https://os.inf.tu-dresden.de/papers_ps/nizza.pdf
From there, Genode is a different take on the same concept even using some of the same components (eg Nitpicker GUI). In both, there are various components integrated that might be used in other projects. A specific set of components together makes up a desktop. A different set might make an appliance. A different set a TV box. Much like how you build your Linux distros with packages and source files but these components can run on the microkernel communicating with each other and operating within their resource-management scheme. That scheme is hierarchical where each process spawns others with control of their memory or resources. Includes ways to let them communicate in such a way that your attack surface is mostly restricted to that composition.
Feske, the designer, gives specifics here:
http://www.slideshare.net/sartakov/genode-os-framework
Nitpicker by itself is worth looking at if you're unfamiliar with trusted paths. Too few systems have a good one.
I'll read up the linked resources.
You can do that in Qubes or the architecturally-superior GenodeOS. Genode is FOSS so nothing stops you. Any programs computing with secrets can run in an isolated partition to prevent leaks. Similar with protecting integrity of backups like in some partitioned filesystems. And you get the benefits of subgraph on the inside.