i admit to not being very familiar with the current version of os/360; can you elaborate?
btw, when you say 'z/OS (descendant of System/370)', i think you are confusing hardware and software; system/370 was the hardware (obsolete), os/360 the software (sadly, not obsolete; later renamed os/370, mvs, and z/os in a series of increasingly desperate attempts to escape its reputation)
generally the functional/imperative contrast centers on mutability: imperative style uses mutability, and functional style doesn't. is that what you mean? i'm not sure a functional core in the sense of 'mutation-free core' is a reasonable way to build a computer operating system, because limiting resource consumption and handling failures reliably are two central concerns for operating systems, and typically immutability makes them much more difficult. immutability does have a lot of uses in modern operating systems, but at least on current hardware, it makes more sense to me to build it as an functional shell around a mutable core than the other way around
(the other aspect of the functional/imperative axis has to do with constructing new functions at runtime, passing them as arguments to subroutines, and returning them from subroutines: you do these things in functional programming, but not in imperative programming. i am at a loss how this could relate to what you're talking about at all.)
it's not clear to me what https://web.archive.org/web/20070403130947/http://alistair.c... has to do with functional-core/imperative-shell or for that matter with operating system kernels. can you elaborate?
for the most part operating systems design is an exercise in delegating as much as possible of those 'executive decisions' to userspace. 'mechanism, not policy' is the mantra for kernels and for system software in general, including things like device drivers and window servers. that way, you can use different policies in different parts of the system and change them over time without destabilizing the system. i feel like microkernels are generally better at this than monolithic kernels, and sel4 in particular takes this to the extreme