Earlier quoted context omitted.
Look up the Barracuda Application Server. It's commercial but has Lua for dynamic stuff. Runs on reliable microkernels, too. One worth cloning with FOSS.
Lua is on the market for much longer time, and of course it's used in many products. It's my personal belief though that in many places Lua is used, it's used for the lack of alternative. And one of my motives for working on MicroPython is to provide such better alternative. It's the same liberal license, but has that "batteries included" stroke (mind that for Micro Python, there're "coin-sized" batteries included ;-…
...the advantage was predictability, simplicity, performance, extensability, and tiny memory footprint. The simplicity, predictability, and performance are where Python was a no-go for embedded. So, those are the areas you need to focus on in your implementation to get parity or beat it.
Plus, these traits of Lua are a pre-requisite to high-assurance systems that take things to next level. I've considered a medium or high assurance Python a number of times. Language and implementation were too complex for me to even start. So, I welcome a simpler take on language that others might take to another level.