Even though I love Python I have a hard time understanding how this can be beneficial in any way? Interpreted languages should not be used to create operating systems.
Oh, they certainly can be and there is no problem with it. The Lisp machines of the '70s and '80s pioneered vital computing concepts (including laser printing and graphics rendering) and were written entirely in (usually interpreted) Lisp dialects.
However, their hardware was specially built for the purpose. Nonetheless, if you can bootstrap a highly efficient interpreter (which the default CPython is not, PyPy might be a better option), it's feasible.