your post reminded me of two cool stories about "Windows on Windows"
1. Microsoft has reimplemented the NT kernel and services as a userspace LibraryOS called Drawbridge (http://ssrg.nicta.com.au/Events/summer/16/baumann.pdf, slide 21)
2. Microsoft teecchniiccaally also already did this in SysWOW64
First story is much more interesting than the second one