fullfilled (hardware setup & loading of os). A virtualisation machine much like vmware or bochs, except that this machine would let the operating run on the hardware instead of emulating the hardware (am I making sense?).
So you mean some sort of HAL like the VM on a IBM370 does.
Possible but linuxBIOS is a _long_ way from that. And it's not really compatible with its overall goal which is to get the hardware up enough that a linux kernel can take over. Load a payload into ram and jump to that.
The qemu is a target in V2 if you start working with that you may be able to do what you want.