The h/w-s/w boundaries blur ever more, as the Stuxnet software worm used to attack the Natanz nuclear facilities demonstrated so well. But the ideas are far from new. In 2003 I designed a stuxnet-style attack on the U.S. (used in the Lior Samson novel, Web Games). In 1968-9, Modern Data published my series on integral hardware-software design, techniques used at Monsanto to design a real-time computer architecture, OS, and extended Fortran as a single system that could run circles around the competition.
I look forward to what comes out of these latest efforts.
Hardware and software Co-design has always been a challenge and a topic for research. At times there is no clear boundary between hardware and software. Hence optimized design with consideration of both hardware and software is really crucial.