Look at http://blogs.azulsystems.com/cliff/2007/03/a_nonblocking_h.h... : an implementation of a non blocking hashmap without lock that scales beautifully on a bunch of cores without the need of their hardware (http://sourceforge.net/projects/high-scale-lib)
As per actor on the JVM open source projects are blooming around such as http://code.google.com/p/actorom/.
Alex Miller did a nice review here of the solutions out there: http://www.javaworld.com/javaworld/jw-03-2009/jw-03-actor-co...
The Erlang way of handling concurrency is to spawn millions of "processes" (threads) obviously these can't be hardware threads so Erlang is hitting problems OS schedulers would handle (or not be able to handle) in the JVM's case.
I would argue that the JVM is eventually going to have to handle the threading itself if it's to support any actor based programming. OS schedulers have other uses they need to be fast for and hardware threads will always have higher overhead. Python's Stackless is perhaps an example of the amount of work it would require.
It's basically doing a MxN actor to thread-pool scheduling.
How does the Scala run queue work? eg have a look at the Erlang article I linked to in my first post.
Also, the only way that Erlang can support running on multiple actual hardware cores is, just as in Java "actor" implementations, to do an MxN mapping of actors to cores.
Now, at one end of the spectrum there's the basic rule of thumb for each system to have O(number of cores) hardware threads and map all of the actors down to that, there are good arguments (by people like Paul Tyma) that promote using 10s or even 100s of thousands of hardware threads in Java on real, shipping OSs (late model Linux is his focus).
Of course, Erlang as both a language and its VM, are matched to each other and their specific problem domain (lots of little actors focused on coordination rather than computational or data transformation intensive jobs) whereas Java is more general. So, things like the management of multiple run queues in Erlang certainly make sense.
The MxN mapping stuff is a nice start but there a long way from there to the Erlang or Azul VM.
Both Erlang and the JVM have to map lots of actors to a number of hardware cores. Lightweight threads of various sorts on top of a smaller number of hardware processes/threads is the same for both. Both Erlang and the JVM use an MxN model. You're last sentence seems to imply that you believe something different.
They make some different tradeoffs because of their goals (coordination vs. general purpose) that has some real implication as to solving particular problems more or less easily. I.e., if you're doing coordination dominated systems then Erlang is easy and the underlying performance loss due to other implementation issues is mitigated. On the other hand, if you have lots of data and computation, then Java's solution will blow Erlang away. The real world is about understanding, choosing, and managing the real tradeoffs -- not pushing some theoretical ideal.
And from your link "we have a lite microkernel style OS; we can easily handle 100K runnable threads" it's not the VM that's handling it.