Compiling to native on whatever random chip is always a recipe for hassles and random incompatibilities which need work to unravel/fix. Having a spec that chip manufacturers can implement (and that can be trivially tested) and/or a JVM that can be exercised and ported to a chip once and validated removes the vast majority of the integration work.

Does it always make sense? No. But clearly a bunch of folks have found it valuable in many niches.