I would certainly win this bet if it involved all the experienced programmers of my acquaintance.
This is basically an equivalent model to web-browsing. You don't load compiled Javascript into your web browser's process address space and jump into it; you put an interpreter between you and it, both for the sake of the code (JS has its own debugger, which treats the browser as a black box that scripters rarely have to think about, and never see backtraces from) and for the sake of the web browser (which doesn't have to deal with any consequences of bad scripting affecting the validity of the browser's own data structures.)
However, we also had a scripting interface. Update a script, tell the software to restart, done. Easy.
I already had a real time app dev runtime / framework in Java for J2SE that immediately started porting to also run on Android. A modern SoC and Android w/ my framework on the desktop and on the device for 3rd party app dev is now driving my future audio hardware dev efforts. First though I get to do a general release of the software dev framework as a product which never really would have happened without Android showing up. Things changed a lot recently!
Anyway, good idea with the scripting / Blackfin deal though as that can pay off big.
Anyway, all the programmers I've known would want good debugging facilities as well, like the ones you get in Visual Studio/ProDG/Code Warrior/Xcode/gdb/etc. - oops, only kidding about gdb! This thing really needs a GUI. This all just expands the time-suck further.
That's not to say it can't be made to work, of course! People can do anything, if they set their mind to it hard enough, and if they wait for long enough, maybe it will even become value for money.