Follow up to add: another way to compete with Linux is on security. The Linux kernel generally has a pretty good security record I think, but there have been plenty of serious bugs over the years. How many exploitable array-out-of-bounds errors or use-after-free errors remain in the Linux kernel? No one knows. If you can rule those out by using a safer language, that might be compelling to a lot of users who care about security above other concerns.
Of course that's hard to pull off in practice. Linux might have classes of errors that wouldn't exist if it were written in Rust, but even if using Rust eliminates three fourths of the code defects, the end result could be less secure if Linux gets ten or a hundred times as much scrutiny from people actively looking through the code for bugs to fix.
If OpenBSD has taught us anything, it's that when you need to start hardening at that level, C stops becoming weakest link and actually the design of the broader UNIX ABIs are the bigger problem. This is why things like selinux and cgroups exist in Linux -- POSIX ABIs are about as secure as Win32 APIs in Windows and thus you need to take additional steps to isolate your running processes if you really care about them behaving.
Of course that's hard to pull off in practice. Linux might have classes of errors that wouldn't exist if it were written in Rust, but even if using Rust eliminates three fourths of the code defects, the end result could be less secure if Linux gets ten or a hundred times as much scrutiny from people actively looking through the code for bugs to fix.