This will be an interesting trend to follow. This linux+perl distribution is made up of just linux kernel and perl binaries. Rest of the tools are all written in perl shell scripts. Miguel de Icaza, the creator of mono is looking for folks to do the same with mono.
I think its a great experiment and will help validate mono as a practical alternative to other frameworks/languages on linux. But what will be even cooler (for me atleast) is if someone can create a true Object oriented shell experience like Microsoft's powershell/monad. And incase you didn't know, Powershell/Monad is the new shell by Microsoft using .net framework. It will probably replace cmd sometime in the future.
That being said, it doesn't really have to be mono. Java is a perfect candidate for it as well. There was a java project related to a java based shell which I don't think is active anymore... may be someone can revive it.
Can it be done ?