My self have started a couple of these overambitious projects, without realizing the amount of work it takes to get something in production level. Sure you can cover the base functionality pretty quickly, but it is the edge cases and polishing and making a robust solution that actually take the most time.
Sometimes these over-ambitious projects, succeed (Linux is the prime example), but usually they do because there is a huge need in the market for such product.
Perhaps Lunascript is something more 'interesting in paper, but not that great in practice'.
It's tempting to replace your language entirely and compile down to something else, but IMHO this sort of thing shows that's a very dangerous play that generally succeeds big or fails big, usually the latter. Incremental expansion of an existing language, even with something as powerful as a syntax preprocessor (that ideally compiles to results that are themselves manipulable language constructs like closures or simple values passed in an idiomatic way), is generally the way to go; most of the win, hardly any of the risk. Something like StratifiedJS or something, if I understand it properly, adding meaningful additional syntax without trying to be its own independent language: http://onilabs.com/stratifiedjs Or, from the sounds of it, the way this language ultimately went.
Linux was not that ambitious to start with. That's why it succeeded: while everyone else was waiting for Hurd or AT&T-free BSD, Linux was rapidly gaining momentum.