The significant difference between Jazelle and your project is how Jazelle sits on top of a CPU that can already run a java interpreter without the instruction set extensions, said instruction set didn't implement all of java (it still required a runtime to implement the missing opcodes, in ARM), and java runtimes quickly got better optimized than doing the same thing with the instruction set.

I think building a CPU that can only do this is a really novel idea and am really interested in seeing when you eventually disclose more implementation details. My only complaint is that it isn't Lua :P