Alan wrote:
	...
	So I would look at one of the 
	modern processes that allows CPU and memory logic to be on the same 
	die and try to make what is essentially an entire machine on that die 
	(especially with regard to how processing, memories and switching 
	relate).

Has anyone looked at the NIOS processor?  If I've understood correctly,
it's a C-friendly RISC +plus+ on-chip FPGA, so you can have conventional
code AND a rapidly-tweakable home-brew.