Game consoles worked a lot like this until around the PS3 era, where the disc/cartridge the game came on was shipping binaries for everything including all the hardware support.

This led to some hilarious implementation shenanigans for the Wii as a transitional console, where the Home button pause screen is not in fact a task switch to some underlying console OS but rather a piece of the SDK that is separately-delivered from each individual game.

ref. https://www.copetti.org/writings/consoles/wii/

As AI reduces the cost for writing closer to the metal, it's also reducing the cost for creating new metal to target. I suspect we'll see an explosion in new hardware as it's cheaper and easier to design custom solutions.

If you're writing for VM and don't need stuff like GPUs, you can.

For actual real hardware, not really