Earlier quoted context omitted.
The startup performance of HotSpot is largely related to the SDK and class library. Remove it and you have a very expedient startup.
Pull an engine out of a car and it gets lighter, too.
I actually worked for Sun/Oracle on VM's but on the embedded not hotspot team. The trick is actually simpler and its called MVM, which is something Sun kept avoiding on the desktop/server for some stupid reason but we did do it on mobile and it made startup almost instant.
The trick is to share one VM instance between multiple apps. So when the OS starts you start the VM process and then fork with a lot of the JITted code already in place so you get almost instant startup and reasonable process isolation.
In mobile where there are some restrictions this is very practical. On the desktop/server this gets a bit tricky with bytecode manipulation, classloaders etc. But this is totally doable.
My personal uninformed theory is that Sun or Oracle didn't do this because they didn't care. MVM has two use cases: faster startup/lower overhead on desktops (they don't care about that).
Server efficiency in small scale deployments (which they don't care about either). AFAIK Google did some work on MVM for App Engine Java, but those are just rumors.